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

Question

Quizplus · Accepted Answer

If the domestic price of wine in England is higher than the world price, it suggests that other countries have a comparative advantage over England in the production of wine. Therefore, England will import wine from other countries where it is cheaper to produce.

Assume,for England,that the Domestic Price of Wine Without International Trade