-According to the above table, if these two countries trade
A)Mexico should export computers and the United States export bicycles.
B)the United States should import computers and Mexico should import bicycles.
C)the United States should export computers and Mexico should export bicycles.
D)we cannot tell which country should export which good without knowing the amount of labor utilized in each country.

Question

-According to the above table, if these two countries trade
A)Mexico should export computers and the United States export bicycles. 
B)the United States should import computers and Mexico should import bicycles. 
C)the United States should export computers and Mexico should export bicycles. 
D)we cannot tell which country should export which good without knowing the amount of labor utilized in each country.

Quizplus · Accepted Answer

The United States should export computers and Mexico should export bicycles because each country should specialize in the good for which they have a comparative advantage.

-According to the Above Table, If These Two Countries Trade