21 Jul CAN YOU DETERMINE WHICH COUNTRY HAS THE ABSOLUTE ADVANTAGE IN AIRCRAFT PRODUCTION?
One July the United States sold aircraft worth $1 billion to China and bought aircraft worth only $ Show more One July the United States sold aircraft worth $1 billion to China and bought aircraft worth only $19000 from China. During the same month however the United States bought $83 million worth of mens trousers slacks and jeans from China but sold only $8000 worth of trousers slacks and jeans to China. Using what you have learned about how trade is determined by comparative advantage answer the following questions. A. Which country has the comparative advantage in aircraft production? In production of trousers slacks and jeans? B. Can you determine which country has the absolute advantage in aircraft production? In production of trousers slacks and jeans? Show less
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