Lack Of Absolute Advantage In Trade
Which of the following is true if a nation lacks an absolute advantage in the production of any good?
A
It will have a higher tax rate.
B
It will export only raw materials to the rest of the world.
C
It will not engage in international trade.
D
It will also lack a comparative advantage in all goods.
E
It will still possess a comparative advantage in the production of at least one good.
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