Factors Determining Comparative Advantage Five years ago, Scandia discovered massive reserves of natural gas and exploited this opportunity to drill for more gas by hiring the best engineers and employing all sorts of latest technologies. Last year, a new government was elected, and this government lowered daily wage-rates of workers. The workers protested and the country saw massive labour strikes in all sectors. Which factor determining foreign trade was compromised in this case? Option for Answer: as below Abundance of natural resources Availability of skilled human capital Political stability Strong domestic infrastructure.

1. Factors Determining Comparative Advantage
Five years ago, Scandia discovered massive reserves of natural gas and exploited this opportunity
to drill for more gas by hiring the best engineers and employing all sorts of latest technologies.
Last year, a new government was elected, and this government lowered daily wage-rates of
workers. The workers protested and the country saw massive labour strikes in all sectors. Which
factor determining foreign trade was compromised in this case?
Option for Answer: as below
Abundance of natural resources
Availability of skilled human capital
Political stability
Strong domestic infrastructure