Suppose England exports cars to Australia and imports cheese from Mexico.This situation suggests that

Question

Quizplus · Accepted Answer

The situation described in the question suggests that England has a comparative advantage in producing cars and Australia has a comparative advantage in producing cheese. This is because England is exporting cars to Australia, which implies that England can produce cars more efficiently than Australia, while Australia can produce cheese more efficiently than England. Similarly, England is importing cheese from Mexico, which suggests that Mexico has a comparative advantage in producing cheese.

Suppose England Exports Cars to Australia and Imports Cheese from Mexico.This