Asked by Mason Smith on May 12, 2024
Verified
When a nation starts opening up to international trade, it will see falling prices for
A) goods that it exports.
B) goods that it imports.
C) goods that it has a comparative advantage in.
D) all goods traded.
Comparative Advantage
An economic theory that describes how a country or entity can produce goods and services at a lower opportunity cost than others.
International Trade
Trading goods, services, and capital across borders or territories between countries.
- Acquire knowledge about the effects of worldwide trading activities on the balance and pricing in home markets.
Verified Answer
CG
Carina GarciaMay 13, 2024
Final Answer :
B
Explanation :
When a nation opens up to international trade, it is likely to see falling prices for goods it imports. This is because increased competition from foreign producers typically leads to lower prices for imported goods.
Learning Objectives
- Acquire knowledge about the effects of worldwide trading activities on the balance and pricing in home markets.