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When can Japan and Mexico gain from trading two goods, for example, cars and textiles? a.When Japan can only produce cars and Mexico can only

When can Japan and Mexico gain from trading two goods, for example, cars and textiles?

a.When Japan can only produce cars and Mexico can only produce textiles.

b.When Japan can produce both goods, but can only produce textiles at a high cost, and Mexico can also produce both products, but can only produce cars at a substantially high price.

c.When Japan is better at producing both goods and Mexico is worse at producing both goods.

d.Japan and Mexico could gain from trading cars and textiles under all of the above conditions.

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