Politics

Question

If nations trade on the basis of comparative advantage

A. a nation can usually gain only at the expense of trading partners.

B. exporting nations always gain and importing countries always lose.

C. all trading nations mutually gain.

D. importing nations always gain and exporting countries always lose.

Answer

C. all trading nations mutually gain.

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The concept of comparative advantage states that countries should specialize in producing goods and services that they can produce more efficiently than other countries, and then trade with...