Assume,for England,that the domestic price of wine without international trade is lower 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

When the domestic price of a good is lower than the world price, it indicates that the country has a comparative advantage in producing that good, leading to exports.

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