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What does the domestic price that prevails without international trade tell us about a
Chapter 9, Problem Questions for Review 9.1(choose chapter or problem)
QUESTION:
What does the domestic price that prevails without international trade tell us about a nations comparative advantage?
Questions & Answers
QUESTION:
What does the domestic price that prevails without international trade tell us about a nations comparative advantage?
ANSWER:Step 1 of 2
Comparative advantage is a situation wherein a country can make products available at a lower opportunity cost as compared to the other country. The comparative advantage facilitates the country to provide the products at a lower price; hence, that country can gain higher profits.