If Japanese workers are more productive than French workers, then trade between Japan and France

A) can take place only if France has an absolute advantage in producing a good or service Japanese buyers want.

B) cannot take place because Japanese goods and services will be less expensive than French goods and services.

C) cannot take place until French workers become more productive.

D) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want.

Question

Tango

Biology

12 May, 10:57

If Japanese workers are more productive than French workers, then trade between Japan and France

A) can take place only if France has an absolute advantage in producing a good or service Japanese buyers want.

B) cannot take place because Japanese goods and services will be less expensive than French goods and services.

C) cannot take place until French workers become more productive.

D) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want.

+1

Answers (1)

Know the Answer?

Penelope Warren · Answer 1

Option D, will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want.

Explanation:

Trading or globalization is a concept where services or goods of one nation can be exported to other nation in terms of some monetary benefits of technological advancement. Two nations will be into a trading partnership till the service or goods of the two nations provide a comparative advantage over and above trading with any other nation. Thus, France shall be taking benefits of better productivity of its workers for meeting out the demand of its citizens in lieu to provide open market for business opportunities in other sectors as well to japan.

Hence, option D is correct