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

Question

Quizplus · Accepted Answer

Vietnam has a comparative advantage in textiles because its domestic price is lower than the world price, suggesting it can produce textiles more efficiently than other countries. Therefore, Vietnam will export textiles.

Assume,for Vietnam,that the Domestic Price of Textiles Without International Trade