“Poor countries like Malawi have no absolute advantages. They have poor soil, low investments in formal...

“Poor countries like Malawi have no absolute advantages. They have poor soil, low investments in formal education and hence low-skill workers, no capital, and no natural resources to speak of. Because they have no advantage, they cannot benefit from trade.”

How would you respond?

Expert Solution

The given statement is false where they can benefit from trade but they need investment and their resources such as low cost labour that can benefit them where they can actually get to ask for investments from other countries so that the production can take place inside the country and necessities can be imported and in this way the country can benefit from this and trade can actually be understood all in all

Rahul Sunny answered 2 years ago

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“Poor countries like Malawi have no absolute advantages. They have poor soil, low investments in formal...

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