The nation of isolani forbids international trade

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The nation of Isolani forbids international trade. In Isolani, you can exchange 1 car for 5 motorcycles. In other countries, you can exchange 1 car for 4 motorcycles. These facts indicate that

A. if Isolani were to allow trade, it would import motorcycles.

B. other countries have an absolute advantage, relative to Isolani, in producing cars.

C. Isolani has a comparative advantage, relative to other countries, in producing cars.

D. the world price of motorcycles exceeds the price of motorcycles in Isolani.

Reference no: EM13796448

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