A country has a comparative advantage in producing spices.
Why may it choose not to specialise in spices?
1 )
The country experiences a lower opportunity cost in producing spices than other countries.
There are high tariffs imposed by other countries on the import of spices.
3 )
There is a low cost of transporting spices to other countries.
4 )
There is high world income elasticity of demand for spices.
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