An argument for the use of commercial policy rest on the need to

  • A make imported goods affordable
  • B reduce domestic unemployment
  • C encourage the importation of non-essential goods
  • D make a country enjoy absolute advantage in production of all goods

The correct answer is D. make a country enjoy absolute advantage in production of all goods

Commercial policy may be defined as one that helps in accelarating the rate of economic development. by enabling the under-developed country to have larger share of the gains from trade, by augmenting the rate of capital formation and by promoting industrialization and maintaining equilibrium in the balance of payments.

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