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An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average
An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes. Each country has 4,500 minutes available as the only resource.
Now the questions are:
If the two countries specialize and trade with each other, who will import coffee? Why?
If the two countries specialize and trade with each other, who will import soybeans? Why?
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