According to the Theory of Comparative Advantage, which of the following reasons justifies a country to export a product?
According to the Theory of Comparative Advantage, which of the following reasons justifies a country to export a product?
According to the Theory of Comparative Advantage, a country should export a product if its cost of producing that product, relative to the cost of producing other goods, is at least as low as in other countries. This theory emphasizes the benefits of specialization and trade where countries focus on producing goods for which they have a comparative cost advantage, leading to increased overall efficiency and wealth.
D is the answer. According to Apics and the answer D is related to the question. Theory of Comparative Advantage Described by David Ricardo in 1817, the theory of comparative advantage underlies most international product trades. Like the theory of absolute advantage, it states that a country will trade with another one as long as it can produce certain goods more efficiently than the other nation.
D. The exporting country's cost of producing the good, relative to other goods, is at least as low as in other countries.
Correct A.. the theory of comparative advantage underlines most international product trades. It states that a county will trade with another one as long as it can produce certain goods more efficiently than the other nation. Described by David Ricardo in 1817... Apics
C is the answer. The Theory of Competitive Advantage says a group as a whole benefits most when those best suited to a task are assigned the task.