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the table above shows the amount of labor required to produce a unit of corn and a unit of shoes in brazil and spain. if both countries have equal numbers of workers, what pattern of international trade between brazil and spain is most likely to emerge?

User AngryJS
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Final answer:

The pattern of international trade between Brazil and Spain is most likely to involve Brazil specializing in corn production and exporting it to Spain, while Spain specializes in shoe production and exports them to Brazil, following the principle of comparative advantage.

Step-by-step explanation:

The scenario you have described relates to international trade and the concept of comparative advantage, which is a foundational element in economics. Comparative advantage occurs when a country can produce a good or service at a lower opportunity cost compared to other countries. If Brazil and Spain have equal numbers of workers, and we assume that Brazil has a lower opportunity cost for producing corn while Spain has a lower opportunity cost for producing shoes, a pattern of international trade will emerge where Brazil specializes in producing corn and Spain specializes in producing shoes.

According to the given scenario, when the United States and Mexico each move labor toward industries where they have a comparative advantage, the total output of both goods increases. Applying this concept to Brazil and Spain, if they shift production toward their comparative advantages, they too would see an increase in the combined production of corn and shoes.

Thus, the most likely pattern of international trade would involve Brazil exporting corn to Spain and importing shoes, while Spain would do the opposite: export shoes to Brazil and import corn. This specialization and trade according to comparative advantage benefits both countries as it allows them to consume more of both goods than they would in the absence of trade.

User Jussi Kujala
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