ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Ecuador’s biggest export is crude petroleum (unprocessed), 63% of which it exports to the United States, and Ecuador’s biggest import is refined petroleum (processed), of which it imports 70% from the United States. Based on this information, which of the following statements is true?
Group of answer choices
Ecuador has comparative advantage in extracting crude petroleum; the US has comparative advantage in producing refined petroleum.
Not enough information.
The US has comparative advantage in extracting crude petroleum; Ecuador has comparative advantage in producing refined petroleum.
Ecuador has absolute advantage in extracting crude petroleum and the US has absolute advantage in producing refined petroleum.
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