Assume that Germany has higher labor productivity and higher wage levels than France. Germany can produce a commodity more cheaply than France if its productivity differential more than offsets its wage differential.
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Ricardo's theory of comparative advantage does not take into account demand conditions when determining relative commodity prices.
A. 对
B. 错
If Canada has a higher wage level and higher labor productivity than Mexico, Canada will necessarily produce a good at a higher labor cost than Mexico.
A. 对
B. 错
If Argentina has a comparative advantage over Brazil in beef relative to coffee, Argentian will specialize in beef production.
A. 对
B. 错
Modern trade theory recognizes that the pattern of world trade is governed by both demand conditions and supply conditions.
A. 对
B. 错