Suppose your friend argues that due to low wages in China, all goods will eventually be produced in China, and the U.S. will produce nothing. Your friend is:
A) Correct, because China's low wages guarantee that all production will shift there
B) Wrong, because China's low wages will lead to decreased demand for Chinese goods
C) Correct, because the U.S. has lost its comparative advantage in manufacturing
D) Wrong, because in this case the U.S. dollar would depreciate, eliminating China's comparative advantage in at least some goods