The united states exports corn and aircraft to the rest of the world and it imports oil and clothing from the rest of the world. do you think this pattern of trade is consistent with the principle of comparative advantage?

Question

24-08-2017
Business

contestada

The united states exports corn and aircraft to the rest of the world and it imports oil and clothing from the rest of the world. do you think this pattern of trade is consistent with the principle of comparative advantage?

Respuesta :

Otras preguntas

Square GYTD has vertices G(−4, 3), Y(0, 3), T(0, −1), and D(−4, −1). Square GYTD was rotated 90° clockwise around the origin to produce square GꞌYꞌTꞌDꞌ. Which c

Let statements p, q, r, and s be as follow: p: angle A and angle B are a linear pair. q: angle A and angle B are supplementary angles. r: angle A and angle B ar

In an informal process known as __________, presidents generally allow senators from the state in which a judicial vacancy occurs to block the nomination.

True or false the gallery of font colors includes a set of theme colors and a set of standard colors.

The required minimum cooking temperature for ground beef is 155°F (68°C). Why must ground beef be cooked to this temperature?

The final step in the control process is to: select one: a. evaluate the results and initiate corrective action. b. measure actual performance. c. establish the

Billy is a 5-year-old child who does not have a regular bedtime, is permitted to neglect personal hygiene such as brushing his teeth, and doesn't usually partic

Traditionally, statuses men occupy (father, husband) are given greater prestige than those occupied by women (mother, wife). this awarding of privilege and pres

What are possible consequences associated with deforestation?

How to calculate false discovery rate in excel?

BlueSky06 BlueSky06 · Answer 1 · 2017-09-07T05:27:56+02:00

Producing corn was one of the things that the Midwest in the US is good at (they are better than the Himalayas), therefore, US exporting corn to the Himalayas would be expected.

They are also expected to make airplanes to deliver to other countries (together with computers) since the US is relatively technologically advanced.

The US needs to import some oil unless they want to price to dramatically increase even though the US does not have enough oil to supply the whole country.

The US will also allow China to produce clothing for them and to make other things to send to China since it is much cheaper to produce clothing elsewhere.

majocgonzalez majocgonzalez · Answer 2 · 2020-03-05T02:48:35+01:00

Answer:

Yes

Explanation:

The comparative advantage is when countries focus on producing a good or service in which they have a lower opportunity cost and then, they exchange them in the international market to be able to get everything they need. According to this, the pattern of trade indicated is consistent with the principle of comparative advantage because the United States focuses on producing corn and aircraft where it should have a lower opportunity cost and exchange it in the international market to get other products the country needs.