1.

Worker hours to produce one barrel of crude oil Worker hours to produce one ton of coal

United States Developed 4 5

Country A Developing 6 5

Country B Developed 7 3

Using the chart, identify an example of comparative advantage for either Country A or B over the United States. Be sure to identify the country with the comparative advantage over the U.S. and product. Explain how the availability and use of a natural resource may impact advantage.

2.

Country A has an absolute advantage over Country B in the production of both soybeans and corn. Explain a scenario in which both countries would benefit if Country A specialized in soybeans and Country B specialized in corn.