Based on this information: A South Africa has an absolute advantage in the production of rum only. B Mauritius should import rum from South Africa. C Mauritius has a comparative advantage in the production of cloth. D South Africa should export cloth to Mauritius.
Based on this information: A South Africa has an absolute advantage in the production of rum only. B Mauritius should import rum from South Africa. C Mauritius has a comparative advantage in the production of cloth. D South Africa should export cloth to Mauritius.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 3SCQ: In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine....
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15. Consider the case of two countries, Mauritius and South Africa, both producing rum and cloth. If all resources are fully and efficiently employed, one worker in Mauritius can produce 270 units of rum or 30m of cloth per week, while one worker in South Africa can produce 320 units of rum or 40m of cloth per week.
Rum Cloth
Mauritius
270
30
South Africa
320
40
Based on this information:
A South Africa has an
B Mauritius should import rum from South Africa.
C Mauritius has a
D South Africa should export cloth to Mauritius.
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