Explanation The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa. When the domestic price of the good is lower than the international price of the commodity, it means that the opportunity cost of production is lower in the domestic country than the foreign country...

The advantage to the nation.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN: 9781305971509

Author: N. Gregory Mankiw

Publisher: Cengage Learning

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Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 9, Problem 1QR

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The advantage to the nation.

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Chapter 9, Problem 6CQQ

Chapter 9, Problem 2QR

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