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Question
Large developed countries can produce more of practically everything than can small, less developed countries. Which of the following statements is true?A. The large country has no incentive to trade with the smaller country.
B. It would be impossible for the smaller country to have a comparative advantage in making any products that the larger country wants to buy.
C. Trade will benefit both countries if each country has a comparative advantage in a traded product.
D. Trade between the countries is more likely to benefit the small country and harm the larger country.
Answer
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Related questions
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