Assume, for Japan, that the domestic price of automobiles without international trade is lower than the world price of automobiles. This suggests that, in the production of automobiles,

a. Japan has a comparative advantage over other countries and Japan will import automobiles.
b. Japan has a comparative advantage over other countries and Japan will export automobiles.
c. other countries have a comparative advantage over Japan and Japan will import automobiles.
d. other countries have a comparative advantage over Japan and Japan will export automobiles.

b

Economics

You might also like to view...

The marginal benefit of the pollution abatement curve

A) has a zero slope. B) has a positive slope. C) slopes upward. D) slopes downward.

Economics

Under the Food, Conservation, and Energy Act of 2008, subsidies to farmers based on gaps between actual prices of crops and targeted prices are called:

A. direct payments. B. price supports. C. countercyclical payments. D. price gap set-asides.

Economics