Question

Assume, for Singapore, that the domestic price of soybeans without international trade is higher than the world price of soybeans. This suggests that, in the production of soybeans, a. other countries have a comparative advantage over Singapore and Singapore will export soybeans. b. Singapore has a comparative advantage over other countries and Singapore will import soybeans. c. other countries have a comparative advantage over Singapore and Singapore will import soybeans. d. Singapore has a comparative advantage over other countries and Singapore will export soybeans.

Answer 1

Answer:

C)other countries have a comparative advantage over Singapore and Singapore will import soybeans.

Explanation:

In the case when the domestic price of the soyabeans considered withoiut the international trade and the same should be more than the world price that means the other country would have the comparative advamtage and the singapore would import the soybeans

Therefore the option c is correct