Question

How does comparative advantage benefit developing nations

a. foreign companies bring their business there, which raises the standard of living
b. worker are allow to ask companies for unions and environmental regulations
c. worker come from farms to work in factories, which creates new urban areas
d. foreign companies hire people to work for good pay under clean, unsafe conditions ​

Answer 1

The correct answer is A) foreign companies bring their business there, which raises the standard of living.

Comparative advantage benefits developing nations in that "foreign companies bring their business there, which raises the standard of living."

Many multinational companies feel attractive to invest in developing countries because they can exploit natural resources and raw materials at better prices and pay low wages. These countries accept these conditions because anyway or the other, this means the creation of jobs and better conditions for people.