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Which goods will a nation typically import?- those goods in which the nation has an absolute advantage - those goods in which the nation has a comparative advantage - those goods in which other nations have an absolute advantage - those goods in which other nations have a comparative advantage

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Final answer:

A nation will typically import those goods in which other nations have a comparative advantage, allowing for specialization and increased trade efficiency. Even with an absolute advantage in all goods, a country benefits more by focusing on goods with the lowest opportunity cost. Trade allows for mutual benefits, as illustrated by a country exporting goods it can produce more efficiently and importing those it cannot.

Step-by-step explanation:

A nation will typically import those goods in which other nations have a comparative advantage. This is because a comparative advantage means that other countries can produce these goods at a lower opportunity cost relative to other goods. When a country imports goods, it benefits by acquiring them at a lower cost than it would take to produce them domestically. Moreover, by focusing on the production of goods where it has a comparative advantage, a country can specialize and trade for other goods, resulting in gains for all parties involved in the trade.

Even if a country has an absolute advantage in all goods due to higher productivity, it still benefits from trade by specializing based on comparative advantage. This is because the country will produce and trade goods that cost it the least in terms of opportunity costs, resulting in increased efficiency and potential gains from trade.

An example of this would be if the United States has an absolute advantage in producing both refrigerators and shoes but has a comparative advantage in producing refrigerators. It would then export refrigerators and import shoes. This way, the US and its trading partners both benefit from the trade.

User Noloman
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Answer:

The correct answer is: those goods in which other nations have a comparative advantage.

Step-by-step explanation:

A nation is said to be having an absolute advantage in the production of a good if it is able to produce a greater quantity of a good at the same cost or same quantity of a good at a lower cost as compared to other nations.

On the other hand, it is said to be having a comparative advantage in the production of a good it can produce a good at lower opportunity cost than other nations.

A nation is said to specialize in the good it has a comparative advantage in producing. So a nation will typically produce more of and export the good it specializes in or has a comparative advantage in producing. While it will import the good it does not have a comparative advantage in producing but other nations specialize in.

User Kiruba
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