Daily Output of Japan and United States

Table 18.2
-Refer to Table 18.2.After trade begins,________ will specialize in the production of stereos and ________ will specialize in the production of tractors.

Question

Daily Output of Japan and United States
  
Table 18.2
-Refer to Table 18.2.After trade begins,________ will specialize in the production of stereos and ________ will specialize in the production of tractors.

Quizplus · Accepted Answer

According to Table 18.2, Japan has a comparative advantage in stereos and the United States has a comparative advantage in tractors. Therefore, after trade begins, Japan will specialize in the production of stereos and the United States will specialize in the production of tractors.