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Japan and the USA produce two goods: watermelons and tangerines. They are deciding whether they should engage in trade. Given their agricultural resources, each can
Japan and the USA produce two goods: watermelons and tangerines. They are deciding whether they should engage in trade. Given their agricultural resources, each can produce the following: Japan: 75 watermelons OR 400 tangerines USA: 70 watermelons OR 425 tangerines. According to the law of comparative advantage, which country should specialize in tangerines? Japan, since they have a comparative advantage in producing tangerines O Neither - no comparative advantage exists O USA, since they have a comparative advantage in producing tangerines O Japan, since they have an absolute advantage in producing tangerines Q USA, since they have an absolute advantage in producing tangerines
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