Mexico.
Mexico also moves production toward its area of comparative advantage, transferring 10 workers away from refrigerators and toward production of shoes.
Mutually Beneficial Trade with Comparative Advantage.
| Country | Shoe Production | Refrigerator Production |
|---|---|---|
| Mexico | 6,000 | 2,500 |
| Total | 9,500 | 28,500 |
In this post
Which country has a comparative advantage in producing shoes quizlet?
Mexico has a comparative advantage, and the United States has an absolute advantage in shoes. The United States produces 3 computers and 6 pairs of shoes per hour.
Which country or countries has an absolute advantage and a comparative advantage in shoes?
D. Mexico has an absolute and comparative advantage in shoes.
What countries use comparative advantage?
A contemporary example: China’s comparative advantage with the United States is in the form of cheap labor. Chinese workers produce simple consumer goods at a much lower opportunity cost. The United States’ comparative advantage is in specialized, capital-intensive labor.
Which country has a comparative advantage in the production of cloth?
England has a comparative advantage in cloth –the good that it is the least inefficient in producing. Notice that the slope of the PPF reflects the opportunity cost (or price) of wine in terms of cloth. The slope indicates how much cloth must be given up to produce one more wine.
Which country has the absolute advantage in the production of apples?
The United States has an absolute advantage: and a comparative advantage in the production of apples. Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers.
Who has the absolute advantage in the production of apples?
The United States
The United States has an absolute advantage in both goods since it can produce more apples and more cell phones using 1,000 workers.
What is USA’s comparative advantage in footwear industry?
The United States has an absolute advantage in producing both shoes and refrigerators; that is, it takes fewer workers in the United States than in Mexico to produce both a given number of shoes and a given number of refrigerators. Absolute advantage simply compares the productivity of a worker between countries.
What is an example of a comparative advantage?
For example, if a country is skilled at making both cheese and chocolate, they may determine how much labor goes into producing each good. If it takes one hour of labor to produce 10 units of cheese and one of of labor to produce 20 units of chocolate, then this country has a comparative advantage in making chocolate.
Which country has absolute advantage in the production of shirts in the production of boots Why?
The United States has the absolute advantage in making shirts, but Canada has the absolute advantage in making boots.
What products the US has a comparative advantage?
The U.S.-Brazil Trade Relationship Revealed
The United States has a revealed comparative advantage in exporting capital goods, chemicals, miscellaneous goods, plastics, rubber and transportation.
What products does the Philippines have a comparative advantage in?
Answer and Explanation:
The country is known for producing crops such as sugarcane, rice, bananas, coconuts, pineapples, mangoes, and corn. It has comparative advantage in rice production because its climatic conditions and arable land are favorable for the production of rice.
What is the UK’s comparative advantage?
The UK is a particularly successful exporter of services – with a strong comparative advantage in a range of sectors, including financial services, business and professional services, IT and communications, design and media, and travel and tourism.
What does Japan have comparative advantage in?
Japan seemed to have a very strong comparative advantage in manufactures (other than textiles and clothing) and an equally strong comparative disadvantage in primary commodities.
Why does China have a comparative advantage in textiles?
Because textiles and clothing are labor-intensive,5 especially clothing, China’s comparative advantage in textiles and clothing largely lies in its abundant supply of unskilled labor.
Which country has the comparative advantage in the production of wheat?
Canada
Canada has a comparative advantage in the production of wheat because she has a lower opportunity cost in the production of wheat.
Which country has an absolute advantage for growing bananas quizlet?
Ecuador also has an absolute advantage in the production of bananas.
What absolute advantage does the United States have?
So, all else equal, the United States has an absolute advantage in the production of copper wire. Therefore, the United States should produce copper wire, sell it or trade it with Mexico or other countries, and buy other goods from them. Trade also involves another type of advantage—comparative advantage.
Who has the absolute advantage in oranges?
For each acre of land assigned to orange production, Mary harvests 10 oranges per year, while Orson harvests 9 oranges per year. Thus, Mary has the absolute advantage in oranges.
How do you find comparative advantage?
A country is said to have a comparative advantage if it produces a good or service with the lowest opportunity cost. Opportunity cost in a comparative advantage context is what is the loss of one good when producing the other.
When a country has a comparative advantage in the production of a good?
A country has a comparative advantage in the production of a good if the opportunity cost of producing that good is lower in that country. Even if one country has an absolute advantage in all goods, it will still gain from trading with another country.