Banana plantations in Hawaii cannot produce nearly enough of all the bananas consumed by Americans. The fact that the U.S. grows and sells bananas gives it a comparative advantage in bananas. It is not an absolute advantage and that is why we choose to import bananas from South America, as well.

Question

Quizplus · Accepted Answer

The U.S. does not have a comparable advantage or an absolute advantage in bananas. We cannot produce bananas as efficiently as other nations (comparative advantage) and we are not the only nation in the world that produces bananas (absolute advantage).

Banana Plantations in Hawaii Cannot Produce Nearly Enough of All