Assume, for Vietnam, that the domestic price of textiles without international trade is higher than the world price of textiles. This suggests that, in the production of textiles,
a. Vietnam has a comparative advantage over other countries and Vietnam will import textiles.
b. Vietnam has a comparative advantage over other countries and Vietnam will export textiles.
c. other countries have a comparative advantage over Vietnam and Vietnam will import textiles.
d. other countries have a comparative advantage over Vietnam and Vietnam will export textiles.
c
You might also like to view...
A set of ideas about the economy that have been organized in a logical framework is called
A) empirical analysis. B) a methodology. C) economic theory. D) data development.
Refer to the above table. What is the absolute price elasticity of demand when price changes from $6.00 to $6.50?
A) 1.60 B) 1.00 C) 0.65 D) 0.60
Macroeconomics is concerned primarily with
A. aggregate economic variables. B. normative issues. C. large firms or multinational corporations. D. production and prices in particular markets.
Proponents of ISI assumed that governments
A) were capable of identifying and correcting market failures. B) were capable of identifying and correcting the excesses of economic populists. C) should enact orthodox stabilization plans. D) could control the terms of trade.