which of the following statements best illustrates how comparative advantage influences specialization? a. a…
which of the following statements best illustrates how comparative advantage influences specialization? a. a mexican company builds several computer manufacturing facilities in mexico city, even though few residents of this city are trained in computer manufacturing. b. brazils climate is especially favorable for growing coffee, and brazil is the worlds leading producer of coffee. c. a movie director chooses to film his new movie in phoenix, az. d. although cubas climate is good for growing tobacco, many cubans have decided to grow corn instead because of the demand for biofuels. please select the best answer from the choices provided. o a o b o c o d
Answer
Brief Explanations:
Comparative - advantage is when a country can produce a good at a lower opportunity - cost than other countries. Brazil's favorable climate for coffee - growing gives it a comparative advantage in coffee production, leading to specialization as the world's leading producer. Option A has no relation to comparative advantage as there's a lack of trained labor. Option C is about movie - filming location, not production of goods. Option D shows a shift away from a product with climate - based advantage due to demand for biofuels, not an example of comparative - advantage - based specialization.
Answer:
B. Brazil's climate is especially favorable for growing coffee, and Brazil is the world's leading producer of coffee.