Q.

According to the theory of comparative advantage, countries gain from trade, because

A. Trade makes firms more competitive, reducing their market power
B. Every country has an absolute advantage in producing something
C. World output can rise when each country specializes in what it does relatively best
D. None of the above
Answer» C. World output can rise when each country specializes in what it does relatively best

View all MCQs in

International Trade

Discussion

No comments yet