Kenya grows some of the highest-quality teas, much of which is exported. Its climate is not as suitable for growing olives, but olives can be sold for a higher price per sack. What would certainly happen if a Kenyan company used some of the land on which tea is grown to plant olive trees?
- AThe company would have a comparative advantage in trade.
- BThe company’s revenue would increase.
- CThere would be a decrease in the credit side of the trade in goods and services.
- DThere would be an opportunity cost from lost tea production.