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Exporting and Importing
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Exporting and Importing
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9. International Trade / Exporting and Importing / Problem 2
Problem 2
Which of the following scenarios best illustrates the concept of comparative advantage?
A
Country A imposes tariffs on imports to protect local industries.
B
Country A and Country B produce the same goods at the same cost.
C
Country A produces wine at a lower opportunity cost than Country B, so it exports wine to Country B.
D
Country A produces all goods domestically to avoid trade.
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