If workers in Mexico produce fewer goods and services per hour than workers in the United States in all areas of production,then

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Quizplus · Accepted Answer

Even if workers in Mexico produce fewer goods and services per hour than workers in the United States, there may still be products or services that Mexico can produce more efficiently or at a lower cost. By specializing in these products and trading with the United States, both countries can benefit from trade. The United States can import goods and services from Mexico that it cannot produce as efficiently, while Mexico can export its specialized goods and services to the United States and earn income. Thus, both countries can gain from trade despite productivity differences.

If Workers in Mexico Produce Fewer Goods and Services Per