Asked by Isaiah Diller on May 14, 2024
Verified
If the U.S.has a comparative advantage in almonds relative to Japan,we would expect that
A) the U.S.would export almonds to Japan and Japan would export almonds to the U.S.
B) Japan would export almonds to the United States.
C) the U.S.would export almonds to Japan.
D) None of the situations would take place.
Comparative Advantage
The ability of a country or individual to produce a particular good or service at a lower opportunity cost than another entity, forming the basis for trade.
Almonds
Edible seeds of the almond tree, widely consumed worldwide and used in various foods and culinary preparations.
Export
Products or services shipped from one nation to another for the purpose of sale or exchange.
- Clarify the principles of comparative and absolute advantage within the context of global commerce.
Verified Answer
TA
Taylor AllenMay 16, 2024
Final Answer :
C
Explanation :
If the U.S. has a comparative advantage in almonds relative to Japan, it means that the U.S. can produce almonds at a lower opportunity cost than Japan. Therefore, the U.S. would export almonds to Japan, while Japan would not export almonds to the U.S. since they can obtain them more efficiently from the U.S.
Learning Objectives
- Clarify the principles of comparative and absolute advantage within the context of global commerce.