Suppose that Egypt decides to become self-sufficient in citrus fruits and even to export them. In...

Suppose that Egypt decides to become self-sufficient in citrus fruits and even to export them. In order to accomplish this, large tax incentives are granted to companies that will invest in citrus fruits production. As a result, the Egyptian industry becomes competitive and able to sell fruits at the lowest price. Does Egypt have a comparative advantage? Why, or why not? What are the consequences for the overall economy? Answer theoretically, not numerically or graphically.

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Rahul Sunny answered 9 months ago

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