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In the context of international trade theory, if a country with a relatively low wage level starts to experience rapid wage growth, what is
In the context of international trade theory, if a country with a relatively low wage level starts to experience rapid wage growth, what is the likely impact on its comparative advantage in laborintensive goods and its overall trade balance?
A Increased comparative advantage in laborintensive goods, improved trade balance
B Decreased comparative advantage in laborintensive goods, deteriorated trade balance
C Increased comparative advantage in laborintensive goods, deteriorated trade balance
D Decreased comparative advantage in laborintensive goods, improved trade balance"
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