Asked by
Manas Ayyalaraju
on Nov 12, 2024
Verified
Unless there are barriers to prevent free international trade,a country becomes an importer:
A) when the world price exceeds the domestic price.
B) when the domestic price exceeds the world price.
C) when there is an excess supply in the domestic market.
D) when it wants to expand its scale of operation.
E) when the opportunity cost of producing a good is lower relative to other countries.
World Price
The international market price of a good, influenced by global supply and demand.
Free International Trade
The exchange of goods and services across international borders without restrictions such as tariffs, quotas, or subsidies.
Importer
An individual or company that buys goods or services from abroad for domestic use or sale.
- Identify the conditions under which a country becomes an importer or exporter of a specific good.
Verified Answer
GF
Learning Objectives
- Identify the conditions under which a country becomes an importer or exporter of a specific good.