Table 2.6 Table 2.6 shows the number of labour hours required to produce a digital camera and a pound of wheat in China and South Korea.
-Refer to Table 2.6.If the two countries specialize and trade, who should export wheat?
A)There is no basis for trade between the two countries.
B)China
C)South Korea
D)They should both be exporting wheat.

Question

Table 2.6  Table 2.6 shows the number of labour hours required to produce a digital camera and a pound of wheat in China and South Korea.
-Refer to Table 2.6.If the two countries specialize and trade, who should export wheat?
A)There is no basis for trade between the two countries. 
B)China 
C)South Korea 
D)They should both be exporting wheat.

Quizplus · Accepted Answer

China should export wheat if it has a comparative advantage in producing wheat compared to South Korea. Comparative advantage means producing a good at a lower opportunity cost than another country.

Table 26 Table 2