Economics 9708 · AS & A Level · International trade and free trade

International trade and free trade — practice question

What could cause a country to lose its comparative advantage in rice production?

  • AAnother country becomes able to produce rice at a lower opportunity cost.
  • BThere is a global fall in demand for rice.
  • CThere is a fall in tariffs imposed by rice importers.
  • DTransport costs to and from another country producing rice decrease.

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