Recall the Application about U.S. candy manufacturers shifting production to Mexico and other countries
due to high sugar prices in the U.S. to answer the following question(s). According to the Application, the
U.S. government protects the domestic sugar industry from foreign competition by restricting sugar
imports, keeping the price of sugar in the U.S. artificially high. In 2003, the cost of sugar was $0.06 per
pound in Mexico and $0.21 per pound in the U.S.
-According to this Application, by shifting production to other countries, U.S. candy manufacturers are able to reduce costs by taking advantage of other countriesʹ

Question

Quizplus · Accepted Answer

By shifting production to countries where sugar is cheaper, U.S. candy manufacturers take advantage of the comparative advantage those countries have in producing sugar at a lower cost.

Recall the Application About U