Watch Solutions Video: Specialization and Trade Solution to In the News The cost of producing sugar is
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Watch Solutions Video: Specialization and Trade Solution to In the News The cost of producing sugar is less in Australia than in the United States, so Australia has a comparative advantage in producing sugar. If Australia specializes in producing sugar and the United States specializes in producing other goods (for example, movies or airplanes) and the two countries engage in free trade, each country can gain and get to a point outside its own PPF.
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