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san4es73 [151]
3 years ago
13

Q. A country's comparative advantage in the extraction of commodities most likely stems from its: A. high labour to capital rati

o. B. large amount of natural resources. C. specialisation in capital intensive products.​
Business
1 answer:
Andru [333]3 years ago
4 0

Answer:

B. large amount of natural resources

Explanation:

Comparative advantage is a country's ability to produce a product or service for a lower opportunity cost than rival countries.  Opportunity costs are the benefits given up in the extraction process. If a  country has a large amount of natural resources, it will use fewer resources in the extraction process than other countries. The trade-off costs will be so little compared to the benefits.

Other countries will find it cheaper to import from a country with large natural resources. For example, oil-rich nations have a comparative advantage in the extraction and processing of oil and oil by-products.

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Explanation:

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