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A country that shuts out imports gives up the gains from specialisation, learning and scale. It also gives up its:
AComparative advantage
BTax collections
CCurrency reserves
DInterest earnings
Answer & Solution
Correct answer: A. Comparative advantage
1. The economy stops doing what it does best.
2. The classic gain from trade is lost.
3. It is comparative advantage.
_Source: OpenStax Principles of Economics 3e, Chapter 34, Globalization and Protectionism._
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