Thailand can produce rubber at a lower opportunity cost than China. Even so, it still brings in some rubber from China. What might account for Thailand importing rubber from China?
- AChina imposes lower tariffs on rubber imports than Thailand.
- BChina is consuming increasing quantities of rubber in industry.
- CThailand has the absolute but not the comparative advantage in rubber production.
- DThailand wants to avoid the risks involved in overspecialising in rubber production.