What kind of advantage does a country have if it can make a product more efficiently?
A. an Import advantage.
B. an export advantage.
C. a comparative advantage.
D. an absolute advantage.
Answer (1)
A country that produces a product more efficiently has a comparative advantage, allowing it to sacrifice less in terms of other goods for its production. This concept emphasizes the importance of opportunity cost in international trade and encourages specialization. By focusing on what they can produce more efficiently, countries can benefit from trade relationships. ;
