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IRINA_888 [86]
3 years ago
9

Suppose that the country of Xenophobia chose to isolate itself from the rest of the world. Its ruler proclaimed that Xenophobia

should become self-sufficient, so it would not engage in foreign trade. From an economic perspective, this idea would______
Business
1 answer:
Readme [11.4K]3 years ago
8 0

Answer:

not make sense as long as Xenophobia had a comparative advantage in any good.

Explanation:

Comparative advantage is when a country has a lower cost of production of a good compared to other countries. The country will be able to produce more than it needs and have excess for export.

So if Xenophobia has comparative advantage in for example yam production, and meets its local needs while having excess. It will make no economic sense to waste this excess. Instead it will be better to export the excess and make money for the country.

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