17 columbia exports coffee beans into france, and imports from france other products which columbia could…
17 columbia exports coffee beans into france, and imports from france other products which columbia could produce. however, it would be at a higher cost than what it costs the french to produce. this practice follows the theory of multiple choice absolute advantage malthus competitive positioning comparative advantage
Answer
Brief Explanations:
The theory of comparative - advantage states that a country should produce and export goods in which it has a lower opportunity cost and import goods in which it has a higher opportunity cost compared to other countries. Columbia exports coffee beans and imports other products it could produce but at a higher cost than France, which follows the concept of comparative - advantage. Absolute advantage is about being more efficient in production without considering opportunity costs. Malthus is related to population theory. Competitive positioning is more about a firm's position in the market, not international trade theory.
Answer:
D. comparative advantage