If a country has lower overall productivity levels than its trading partners, then it will Group of answer choices have a lower standard of living than its trading partners. be unable to export. have a trade deficit. not be able to obtain gains from trade.

Respuesta :

If a country has lower overall productivity levels than its trading partners, then it will:

  • Have a trade deficit.
  • Not be able to obtain gains from trade.

Lower over productivity level

In a situation were a  country has lower overall productivity levels than its trading partners this mean that the country cannot benefit from trade.

Which in turn mean that the country with the lower productivity level cannot gain from trade because no comparative advantage for the country.

Therefore it will have a trade deficit and not be able to obtain gains from trade.

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