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Why does the United States not have an absolute advantage in coffee?

Short Answer

Expert verified

Because of the adverse climate conditions which leads to quite expensive and difficult to engage in coffee cultivation, the United states do not have an absolute advantage in coffee.

Step by step solution

01

Step 1. Meaning of absolute advantage.

It is the ability of a party or individual, or firms, or country to produce a good or service more efficiently than its competitors.

02

Step 2. Reason why United states do not have an absolute advantage in coffee.

Basically, the climate in the United states is not ideal for growing coffee, so countries closer to the equator tend to have a greater absolute advantage.

The United states lacks an absolute advantage in the production of coffee since it would be quite expensive and difficult to engage in coffee cultivation since the coffee tree is not favored by the adverse climate conditions of the country. The coffee tree cannot withstand the low adverse temperatures and extremely high temperature variations in the United states.

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