If workers in Mexico produce fewer goods and services per hour than workers in the United States in all areas of production, then

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Quizplus · Accepted Answer

Despite a lower productivity rate in Mexico, both countries can still benefit from trade. For example, the United States may have a comparative advantage in producing high-tech goods, while Mexico may have a comparative advantage in producing agricultural goods. By trading with each other, both countries can specialize in producing the goods in which they have a comparative advantage and can gain from the mutual benefits of trade. So, both the United States and Mexico will benefit from trade with each other.

If Workers in Mexico Produce Fewer Goods and Services Per