Peru and Bolivia account for almost 97% of the production of quinoa seed, and most of it is sold to the U.S., Japan, and other wealthy nations. According to a former Colorado State agronomist who helped introduce the product into the U.S. several years ago, "This food is about the most perfect you can find for human diets." Although there are other areas where the seed will grow (including higher elevations in Colorado), the majority of the quinoa sold in the U.S. is imported from Peru and Bolivia. These two nations have a(n) ________________ in the production of quinoa.

Question

Quizplus · Accepted Answer

Peru and Bolivia have a comparative advantage in the production of quinoa seed because they can produce it at a lower opportunity cost than other countries due to favorable growing conditions, expertise, and economies of scale. This is evidenced by the fact that these two nations account for almost 97% of the world's quinoa production and dominate the global market for this product. Other countries may be able to produce quinoa, but they cannot do so as efficiently or competitively as Peru and Bolivia.

Peru and Bolivia Account for Almost 97% of the Production