For any country,if the world price of copper is higher than the domestic price of copper without trade,that country should
A)export copper,since that country has a comparative advantage in copper.
B)import copper,since that country has a comparative advantage in copper.
C)neither export nor import copper,since that country cannot gain from trade.
D)neither export nor import copper,since that country already produces copper at a low cost compared to other countries.

Question

Quizplus · Accepted Answer

If the world price of copper is higher than the domestic price of copper, it means that other countries are willing to pay more for the copper than the domestic market in that country. This indicates that the country has a comparative advantage in producing copper and should export it to take advantage of the higher prices available in the world market.

For Any Country,if the World Price of Copper Is Higher