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Advanced Placement (AP), 14.04.2021 20:50 diamondgdm
Which of the following best explains a trading relationship between two countries based on comparative advantage?
A- One country exports raw materials and the other country exports manufactured goods, resulting in a global economic balance.
B- One country implements tariffs on goods that are imported from another country because the importing country will benefit from profits on the sale of the goods.
C- Each country specializes in the type of good for which it has the lowest opportunity cost, resulting in a higher global output of both types of goods.
D- Two countries trade in luxury items, but the volume of trade is limited by the highest cost of long-distance trade.
E- Each country exports the same type of good because the countries are similar in terms of natural resources and labor costs.
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Which of the following best explains a trading relationship between two countries based on comparati...
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