According to the theory of comparative advantage, which of the following is not a reason why countries trade?
A. Costs are higher in one country than in another.
B. Prices are lower in one country than in another.
C. The productivity of labour differs across countries and industries.
D. Exports give a country a political advantage over other countries that export less.
Ans: D. Exports give a country a political advantage over other countries that export less.
Business
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Indicate whether the statement is true or false
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