In India, an acre of land can produce 40 tons of sugarcane or 65 bushels of corn per season, while in the United States, an acre of land can produce 20 tons of sugarcane or 150 bushels of corn per season.

a. Which country has the absolute advantage in the production of sugarcane? Of corn? Explain.

b. Explain the concept of comparative advantage. What is India’s comparative advantage in this case? What about the United States?

c. Suppose U.S. scientists have developed a groundbreaking new technology that increases the productivity of sugarcane in the United States to 75 tons of sugarcane per acre (and has no effect on U.S. corn productivity or Indian productivity in sugarcane or corn). How does this change India’s comparative advantage?