Almia and Adjikistan are two open economies producing goods A and B. Many people in? Almia, including the leading? economists, are lobbying for trade. They feel that the country has a comparative advantage in good A that could be traded with good B from Adjikistan. The government of Adjikistan is also under pressure from various groups to encourage trade with Almia.? However, when both countries begin to? trade, gains from exporting good A to Adjikistan turn out to be much lower than what? Almia’s economists had anticipated. Which of the? following, if? true, would explain this? outcome?A. With the introduction of? trade, Adjikistan now has access to? Almia’s advanced production technology in A.B. Industries in Almia have better environmental standards than Adjikistan.C. The Almian workers are more efficient in producing good A than good B.D. The opportunity cost of producing good A in Almia is very low.E. Almia has a very large workforce.
Almia and Adjikistan
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