Question

Belarus has a comparative advantage in the production of linen, but Russia has an absolute advantage in the production of linen. If these two countries decide to tradeA. Belarus should export linen to Russia.B. Russia should export linen to Belarus.C. For these two countries, trading linen would be a "stand-off" so they should trade another product.D. Without additional information about Russia, this question cannot be answered.

Answer 1

A. Belarus should export linen to Russia

Step-by-step explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

A country has absolute advantage in the production of goods and services when it produces more quantity of goods and services when compared with other countries.

A country should produce goods for which it has comparative advantage in its production because cost of production is lower when compared with other countries.

Russia should stop producing linen because it doesn't have comparative advantage in its production and Belarus should export linen to Russia