ABSOLUTE ADVANTAGE & COMPARATIVE ADVANTAGE Q.6. An average worker in brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, whilst an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes. Who has the absolute advantage in coffee? Explain II. Who has the comparative advantage in coffee? Explain III. If the two countries specialize and trade with each other, who will import coffee? Explain
ABSOLUTE ADVANTAGE & COMPARATIVE ADVANTAGE Q.6. An average worker in brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, whilst an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes. Who has the absolute advantage in coffee? Explain II. Who has the comparative advantage in coffee? Explain III. If the two countries specialize and trade with each other, who will import coffee? Explain
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 3SCQ: In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine....
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Q.6. An average worker in brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, whilst an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes.
- Who has the absolute advantage in coffee? Explain
II. Who has the comparative advantage in coffee? Explain
III. If the two countries specialize and trade with each other, who will import coffee? Explain
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