Asked by Claudia Holton on May 12, 2024
Verified
The nation that has a comparative advantage in a particular product will be the only world exporter of that product.
Comparative Advantage
The ability of an entity to produce goods or services at a lower opportunity cost than others, driving specialization and trade benefits.
World Exporter
A term that describes a country, region, or entity that is a leading participant in international trade, specifically in exporting goods or services to other countries.
- Gain insight into the principle of comparative advantage and its implications in international markets.
Verified Answer
EK
Evangalen KousourisMay 19, 2024
Final Answer :
False
Explanation :
Just because a nation has a comparative advantage in producing a certain product, it does not mean that they will be the only world exporter of that product. Other nations may still choose to produce and export that product, but the nation with the comparative advantage may have a lower cost of production and be able to sell the product at a lower price, giving them a competitive edge in the market.
Learning Objectives
- Gain insight into the principle of comparative advantage and its implications in international markets.
Related questions
If Two Nations Specialize According to Their Respective Comparative Advantage ...
Assume That by Devoting All Its Resources to the Production ...
International Trade Based on the Principle of Comparative Advantage Creates ...
In a Two-Nation, Two-Good World, If One Nation Is More ...
What Is the Principle of Comparative Advantage