Author Question: India has a comparative advantage compared to Spain in the production of clothing if (Read 69 times)

Diane · **on:** Apr 19, 2019

Question 1

Thailand has a comparative advantage in rice and an absolute advantage in both rice and cell phones. Indonesia has a comparative advantage in cell phones. According to this scenario

◦ Indonesia should import both cell phones and rice.
◦ Thailand should export both cell phones and rice.
◦ Thailand should export rice and import cell phones.
◦ Indonesia should export rice and import cell phones.

Question 2

India has a comparative advantage compared to Spain in the production of clothing if

◦ India can produce clothing at a lower monetary cost than Spain can.
◦ India can produce clothing using fewer resources than Spain can.
◦ the demand for clothing is higher in India than in Spain.
◦ India can produce clothing at a lower cost in terms of other goods than Spain can.

katara · **Reply #1 on:** Apr 19, 2019

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Diane · **Reply #2 on:** Apr 19, 2019

TY

katara · **Reply #3 on:** Apr 19, 2019

You're welcome