Question

Assume, for Vietnam, that the domestic price of textiles without international trade is higher than the world price of textiles. This suggests that, in the production of textiles

a. other countries have a comparative advantage over Vietnam and Vietnam will import textiles.
b. Vietnam has a comparative advantage over other countries and Vietnam will export textiles.
c. Vietnam has a comparative advantage over other countries and Vietnam will import textiles.
d. other countries have a comparative advantage over Vietnam and Vietnam will export textiles

Answer 1

a. other countries have a comparative advantage over Vietnam and Vietnam will import textiles.

Step-by-step explanation:

A country has comparative advantage if it produces a good or service at a lower opportunity cost when compared to other countries.

The price of textile in Vietnam is higher when compared with other countries, this shows that Vietnam doesn't have a comparative advantage in the production of textile.

Vietnam should import textiles and use its resources to produce other goods for which it has a comparative advantage.

I hope my answer helps you.