Which of the following is not a source of comparative advantage?
A)Relative abundance of labour and capital
B)Technology
C)Climate and natural resources
D)A strong foreign currency exchange rate

Question

Quizplus · Accepted Answer

A strong foreign currency exchange rate is not a source of comparative advantage. Comparative advantage comes from factors such as relative abundance of labour and capital, technology, and climate and natural resources. A strong foreign currency exchange rate can make a country's exports more expensive and less competitive in the international market, which is a disadvantage rather than an advantage.

Which of the Following Is Not a Source of Comparative