A worker in Mexico takes 600 hours to produce a truck and 3 hours to produce a case of beer. A worker in Brazil takes 400 hours to produce a truck and 2 hours to produce a case of beer. a. Which country has comparative advantage in the production of beer? Explain. b. Will these countries trade trucks and beer? Why or why not?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 19CTQ: Look at Exercise 33.2. Compute the opportunity costs of producing sweaters and wine in both France...
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A worker in Mexico takes 600 hours to produce a truck and 3 hours to produce a case of beer. A worker in Brazil takes 400 hours to produce a truck and 2 hours to produce a case of beer.

a. Which country has comparative advantage in the production of beer? Explain.

b. Will these countries trade trucks and beer? Why or why not?

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