Chapter 33: Q.18 (page 804)
Why does the United States not have an absolute advantage in coffee?
Short Answer
Because it does not have the required climate.
Chapter 33: Q.18 (page 804)
Why does the United States not have an absolute advantage in coffee?
Because it does not have the required climate.
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Get started for freeIn Exercise 33.31, is there an “ask” where Venezuelans may say “no thank you” to trading with Canada?
Is it possible to have a comparative advantage in the production of a good but not to have an absolute advantage? Explain.
You just overheard your friend say the following: “Poor countries like Malawi have no absolute advantages. They have poor soil, low investments in formal education and hence low-skill workers, no capital, and no natural resources to speak of. Because they have no advantage, they cannot benefit from trade.” How would you respond?
What is intra-industry trade?
Why does the United States not have an absolute advantage in coffee?
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