Does germany have a comparative advantage

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Suppose that Germany decides to become self sufficient in bananas and even to export them. in order to accomplish these goals, large tax incentives are granted to companies that will invest in banana production. Soon, the German industry is competitive and able to sell bananas at the lowest price anywhere. Does Germany have a comparative advantage? Why, or why not? What are the consequences for the overall economy?

Reference no: EM13204991

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