Answered: Brazil Mexico Soya per unit of labor…

Brazil Mexico Soya per unit of labor 0.05 0.02 Corn per unit of labor 1.25 1.40 Which country has absolute advantage in growing corn? Which country should specialize in producing and exporting soya?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: International Trade

Section20.1: International Trade Theory

Problem 2ST

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Question

	Brazil	Mexico
Soya per unit of labor	0.05	0.02
Corn per unit of labor	1.25	1.40

Which country has absolute advantage in growing corn?
Which country should specialize in producing and exporting soya?

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