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

Question

Quizplus · Accepted Answer

If the domestic price of beets in Mexico is higher than the world price, it suggests that it is more expensive for Mexico to produce beets than it is for other countries. Other countries would have a comparative advantage over Mexico in producing beets and therefore Mexico would import beets from these other countries.

Assume,for Mexico,that the Domestic Price of Beets Without International Trade