Question

Revisiting the table representing production possibilities for the United States and Bangladesh, what impact does the United States' decision to produce only smartphones while Bangladesh focuses on blue jeans have on their economies?

Answer 1

The impact of the United States' decision to produce only smartphones while Bangladesh focuses on blue jeans would be that the United States' economy would benefit from the production and export of smartphones, while the Bangladesh economy would benefit from the production and export of blue jeans.

Step-by-step explanation:

When countries trade, they tend to specialize in certain goods to produce and export, and other goods to not produce and import. In the case of Bangladesh and the U.S, Bangladesh specializes in producing garments while the U.S specializes in producing dairy products. This specialization allows each country to focus on their respective areas of comparative advantage, leading to increased production and efficiency. The impact of the United States' decision to produce only smartphones while Bangladesh focuses on blue jeans would be that the United States' economy would benefit from the production and export of smartphones, while the Bangladesh economy would benefit from the production and export of blue jeans.