FIGURE 33- 2
-Refer to Figure 33- 2. If Austria and Switzerland engage in free trade with each other, it is likely that Switzerland will specialize in the production of and Austria will specialize in the production of _.

Question

Quizplus · Accepted Answer

In free trade, countries specialize in producing goods where they have a comparative advantage. If Switzerland specializes in bicycles, it implies they have a comparative advantage in bicycles, while Austria specializes in shoes, indicating their comparative advantage in shoes.

FIGURE 33- 2 -Refer to Figure 33- 2. If Austria and Switzerland Engage