Friday, March 14, 2014

5.04 Why do countries trade


Corn         
Citrus         
Number of additional
worker hours to produce
one unit of citrus instead
of one unit of corn
United States  
2
4
Higher
Developing Country South Africa
6
10
Lower
Developed Country Romania
8
10
Lower
Table 2: Identify one developing country and one developed country along with the United States. Complete a trade analysis for industrial products.
Apparel      
Computer Software    
Number of additional
worker hours to produce
one unit of computer
software instead of apparel
United States
2
4
Lower
Developing Country South Africa
4
12
Higher
Developed Country Romania
6
8
Lower




(A) Romania a developing country has an absolute advantage with corn and citrus compared to The united states

(B)South Africa can produce faster and cheaper than the U.S

( C )  Most trade Happens because of comparative advantage because of the countries that trade will benefit from each other

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