Q46_267_20250808155644.webp
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Q46_267_20250808155644.webp

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Trade theory suggests that Japan would gain from a subsidy the United States provides its grain farmers if the
gains to Japanese consumers of wheat products more than offsets the losses to Japanese wheat farmers.
This would occur as long as Japan
A. has a comparative advantage in wheat.
B. has an absolute advantage in producing wheat.
C. is a net importer in bilateral trade flows with the United States.
D. is a net importer of wheat.
E. is involved in intra-industry trade with the United States.
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