One American worker, in one month, can produce

3 cars or 2 tons of food

One Japanese worker, in one month, can produce

2 cars or 2 tons of food

Work the problem, using graphs and math, to explain:

1. Who has the comparative advantage in the production of cars? Why?

2. Who has the comparative advantage in the production of food? Why?

3. Can you illustrate a scenario where both parties benefit from specialization and trade, as opposed to if they had to produce all of the commodities for their own consumption?