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
A) Indonesia should import both cell phones and rice.
B) Thailand should export both cell phones and rice.
C) Thailand should export rice and import cell phones.
D) Indonesia should export rice and import cell phones.

Question

Quizplus · Accepted Answer

Thailand should export rice, where it has a comparative advantage, and import cell phones from Indonesia, which has a comparative advantage in cell phones, to maximize the benefits of trade for both countries.

Thailand Has a Comparative Advantage in Rice and an Absolute