Multiple Choice
Assume,for Japan,that the domestic price of automobiles without international trade is lower than the world price of automobiles.This suggests that,in the production of automobiles,
A) Japan has a comparative advantage over other countries and Japan will import automobiles.
B) Japan has a comparative advantage over other countries and Japan will export automobiles.
C) other countries have a comparative advantage over Japan and Japan will import automobiles.
D) other countries have a comparative advantage over Japan and Japan will export automobiles.
Correct Answer:

Verified
Correct Answer:
Verified
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