Which goods will a nation typically import?- those goods in which the nation has an absolute advantage - those goods in which th
e nation has a comparative advantage - those goods in which other nations have an absolute advantage - those goods in which other nations have a comparative advantage
The correct answer is: those goods in which other nations have a comparative advantage.
Explanation:
A nation is said to be having an absolute advantage in the production of a good if it is able to produce a greater quantity of a good at the same cost or same quantity of a good at a lower cost as compared to other nations.
On the other hand, it is said to be having a comparative advantage in the production of a good it can produce a good at lower opportunity cost than other nations.
A nation is said to specialize in the good it has a comparative advantage in producing. So a nation will typically produce more of and export the good it specializes in or has a comparative advantage in producing. While it will import the good it does not have a comparative advantage in producing but other nations specialize in.
