Daily Output of Scotland and Poland

Table 18.1
-Refer to Table 18.1.After trade begins,________ will specialize in the production of accordions and ________ will specialize in the production of bagpipes.

Question

Daily Output of Scotland and Poland
  
Table 18.1
-Refer to Table 18.1.After trade begins,________ will specialize in the production of accordions and ________ will specialize in the production of bagpipes.

Quizplus · Accepted Answer

Poland will specialize in the production of accordions due to its comparative advantage in producing them more efficiently, while Scotland will specialize in bagpipes for the same reason. Comparative advantage drives countries to specialize in the production of goods for which they have a lower opportunity cost.