Question

For any country, if the world price of zinc is higher than the domestic price of zinc without trade, that country should a.neither export nor import zinc, since that country already produces zinc at a low cost compared to other countries. b.neither export nor import zinc, since that country cannot gain from trade. c.export zinc, since that country has a comparative advantage in zinc. d.import zinc, since that country has a comparative advantage in zinc.

Answer 1

c.export zinc, since that country has a comparative advantage in zinc.

Step-by-step explanation:

In the case when the zinc world price is more than the domestic zinc price without trade so the country should export the zinc as the company would have the comparative advantage. Here high price menas the international demand is more than the domestic demand due to which the country could earn more profits