A Small Country in Central America Previously Produced All of Its

Multiple Choice

A small country in Central America previously produced all of its own clothing because it has a strong textiles industry. Recently, it began importing clothing from Philippines, Vietnam, and Bangladesh. What is the likely result for the importing country?

A) it will experience higher clothing prices
B) it will shift additional resources into its own textile industry
C) it will shift resources from textiles to a higher value industry
D) it will export less overall