Question

“The desire for profit can end up pushing countries toward producing those goods in which they have a comparative advantage.” Do you agree or disagree? Explain your answer.

Answer 1

Answer:

It is reasonable to agree with the statement that the desire for profit can end up pushing countries toward producing those goods in which they have a comparative advantage.

Explanation:

The idea of comparative advantage implies that a country has better chances to make a profit at lower costs in some industries rather than in others.

Even though country’s nation traditionally may prefer production of textile goods, rather than growing rice, if rice export promises the country higher profit at lower costs, the country will be pushed towards growing and exporting rice to satisfy its desire for profit.