If a nation begins to trade, it will be able to sell (export) the product for which its own relative price is:

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When analyzing the statement about trade and export pricing, we need to consider how relative prices determine comparative advantage. 
Option 1: 'less than 10% of the value in other nations.' This is overly precise and not a general rule of trade theory. Relative prices are not defined by a fixed percentage like '10%'; they depend on relative costs, technologies, and market conditions, so this specific figure is not a sound basis for deciding exportability. 
Option 2: 'higher than that in other nations.' If a nation could fetch a higher price domestically than abroad for the same product, there would be little incentive to export that good because selling abroad would yield less revenue relative to domestic sales. In a simple trade framework, exporters typically sell goods where their own relative price is lower than the world price, not higher. This makes exporting the good less feasible or less advantageous under standard comparative advantage reasoning. 
Option 3: 'lower than that in other nations.' This aligns with the core idea of comparative advantage: a country exports goods for which its own relative price is lower than in other nations, meaning it can sell abroad at a competitive price while still maintaining profitability domestically. This price relationship creates an incentive to specialize and trade. 
Option 4: 'the same as that in other nations.' If the relative price were identical across countries, there would be no inherent incentive to trade based on price differences alone. While trade can occur for other reasons (such as scale, variety, or non-price factors), the classic model emphasizes price differences as the driver of export activity, so sameness would not explain a straightforward export motive. 
Overall, the reasoning centers on the principle that exports arise from a lower domestic relative price relative to other nations, which makes foreign sales advantageous while leveraging domestic production.

01:220:300:01 INTERNATIONAL ECON Specific factors model practice questions (not for credit)

If a nation begins to trade, it will be able to sell (export) the product for which its own relative price is:

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