A rich nation will trade with a poor nation because the:
A. rich nation has the absolute advantage in all products.
B. poor nation has the absolute advantage in all products.
C. poor nation has the comparative advantage in a product.
D. rich nation has the comparative advantage in all products.
Answer:C
A rich nation will trade with a poor nation because the:
A. rich nation has the absolute advantage in all products. B. poor nation has the absolute advantage in all products. C. poor nation has the comparative advantage in a product. D. rich nation has the comparative advantage in all products.