Asked by Brenda Oliveira on May 07, 2024
Verified
A nation will import a particular product if the world price is less than the domestic price.
World Price
The international market price of a good or service, determined by world demand and supply.
Domestic Price
The price of goods or services within a country's borders.
- Examine the importance of export supply and import demand curves within the context of international trade.
Verified Answer
FM
Fouad MoabiMay 08, 2024
Final Answer :
True
Explanation :
If the world price is lower than the domestic price, importing would be a cost-effective option for the nation to obtain the product.
Learning Objectives
- Examine the importance of export supply and import demand curves within the context of international trade.
Related questions
The Equilibrium World Price of a Product Equates the Quantities ...
A Nation's Export Supply Curve Is Downsloping, and Its Import ...
In a Two-Nation Model, the Equilibrium World Price Will Occur ...
A Nation's Export Supply Curve for a Specific Product ...
A Nation's Import Demand Curve for a Specific Product ...