If Argentina has a large amount of farmland and Great Britain has many factories,
A)the two nations have no reason to trade.
B)Argentina will be willing to trade but Great Britain will not.
C)Great Britain will be willing to trade but Argentina will not.
D)the two nations will probably engage in mutually advantageous trade.

Question

Quizplus · Accepted Answer

The fact that Argentina has a lot of farmland and Great Britain has many factories means that each country has a comparative advantage in producing certain goods. Argentina can produce agricultural products more efficiently than Great Britain, while Great Britain can produce manufactured goods more efficiently than Argentina. This creates a potential for mutually advantageous trade between the two nations, allowing each country to specialize in their area of comparative advantage and trade with each other for the goods they cannot produce as efficiently.

If Argentina Has a Large Amount of Farmland and Great