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

Quizplus · Accepted Answer

Mexico has a comparative advantage in producing bicycles, while the United States has a comparative advantage in producing computers.

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