Question

When does one country have an absolute advantage over another country?
O A. When its production costs are lower
B. When its government charges lower taxes
C. When its infrastructure is more advanced
D. When its workers earn higher wages
Answer ???????

Answer 1

Answer:

I would say A

Explanation:

Cant be D because cheaper labor would attract more companies

While lower company taxes may seem nice, it does not make up for high production costs

And infrastructure would be better, but that generally goes with higher taxes and wages.

A Perfect example is Bangladesh and other countries like it vs Europe and North America

Bangladesh has bad infrastructure, less wages, etc. but it has lower production costs because there are fewer regulations and protection plans. Therefore, more production of shoes or clothing there rather than Western civilization.