Assume,for Vietnam,that the domestic price of textiles without international trade is higher than the world price of textiles.This suggests that,in the production of textiles,
A)Vietnam has a comparative advantage over other countries and Vietnam will import textiles.
B)Vietnam has a comparative advantage over other countries and Vietnam will export textiles.
C)other countries have a comparative advantage over Vietnam and Vietnam will import textiles.
D)other countries have a comparative advantage over Vietnam and Vietnam will export textiles.

Question

Quizplus · Accepted Answer

If the domestic price of textiles in Vietnam is higher than the world price, it suggests that other countries have a comparative advantage over Vietnam in the production of textiles. Therefore, Vietnam will import textiles from other countries in order to obtain them at a lower cost than they would if they produced them domestically.

Assume,for Vietnam,that the Domestic Price of Textiles Without International Trade