165k views
3 votes
The United States has a comparative advantage in the production of wheat, and Haiti has a comparative advantage in the production of sugar. If both countries specialize based on the theory of comparative advantage

User Anderswelt
by
8.5k points

1 Answer

2 votes

Answer:

the production and the consumption of both the goods will increase.

Step-by-step explanation:

  • The U.S and the Haiti have a comparative advantage in the production of the wheat and sugar thus they can maximize their combined output and allocate their resources more efficiently.
  • If both of the countries tend to specials on the basis of the theory of comparative cost advantage given by David Ricardo.

User Mark Watney
by
8.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.