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Choose (a) a country or region, and (b) a particular product (or type of product) that the chosen area produces. Now respond to the following
Choose (a) a country or region, and (b) a particular product (or type of product) that the chosen area produces. Now respond to the following prompts:
- Why might that area have a comparative advantage in that good?
- Why might the comparative advantage exist?
- Are there particular resources available to the area, particular past decisions that the area has made, or other characteristics that allow the area to produce the good cheaper (in terms of the other goods foregone when producing the good)?
- What gives rise to this comparative advantage?
- Are there other goods that the country would have a similar comparative advantage? Why?
- Is there a good in which your chosen area would not have a comparative advantage? Why?
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