Asked by Khyla Singleton on Jul 16, 2024
Verified
A nation will neither export nor import a specific product when its
A) domestic price equals the world price.
B) export supply curve lies above its import demand curve.
C) export supply curve is upsloping.
D) import demand curve is downsloping.
Domestic Price
The price of goods or services within a country's borders, as opposed to their price when exported.
World Price
The global market price of a good or service, determined by supply and demand across all countries.
Export Supply Curve
A graphical representation that shows the relationship between the price of a good on the international market and the quantity of the good that a country is willing to export.
- Study the implications of prices within the country and around the globe on the practices of importing and exporting.
Verified Answer
NQ
Nguy?n QuânJul 17, 2024
Final Answer :
A
Explanation :
When a nation's domestic price equals the world price, there is no price advantage in either importing or exporting the specific product, leading to no trade in that product.
Learning Objectives
- Study the implications of prices within the country and around the globe on the practices of importing and exporting.