Asked by

Mary An Cullantes
on Dec 12, 2024

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If domestic producers have a comparative advantage in producing a good,

A) trade restrictions will be required before the producers can benefit from their comparative advantage.
B) trade restrictions will still be required before the domestic producers can compete with low-wage producers abroad.
C) they will be able to compete effectively in a competitive world market.
D) the government should subsidize production of the good so the domestic producers will be able to achieve a larger share of the world market.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than another.

Competitive World Market

A global economic environment where businesses compete across borders to offer the best products and services.

Trade Restrictions

Measures imposed by governments to control or limit the exchange of goods and services across their borders, including tariffs, quotas, and embargoes.

  • Understand the concept of comparative advantage and its application in international trade.
  • Gain an understanding of the positive aspects of free trade and the harmful effects of trade limitations.
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jared kondratDec 14, 2024
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