Suppose the US and Mexico both produce semiconductors and auto parts and the US has a comparative advantage in semiconductors while Mexico has a comparative advantage in auto parts. Also suppose the US has an absolute advantage in the production of both semiconductors and auto parts. The US should:

a. not trade semiconductors and auto parts with Mexico.

b. export semiconductors to Mexico and import auto parts from Mexico.

c. import semiconductors from Mexico and export auto parts to Mexico.

d. export both semiconductors and auto parts to Mexico.

Posted Date: 4/3/2013 3:26:37 AM | Location : United States

Ask an Expert

Related Discussions:- Draw a supply curve, Assignment Help, Ask Question on Draw a supply curve, Get Answer, Expert's Help, Draw a supply curve Discussions

Write discussion on Draw a supply curve
Your posts are moderated

Write your message here..

Related Questions

What is analytical or analytic mean, If somebody is analytical then it mean... If somebody is analytical then it means the one is always thinking about things - analyzing, pondering, etc. A one who is analytical will have all of the facts about something befo

Give the example of marketing communications, Give the example of marketing... Give the example of marketing communications For instance, many organisations in airline industry have shifted their attention to the needs of travel trade, customers and compe

Discuss the role of human resource management, Question 1: (a) Effectiv... Question 1: (a) Effective Knowledge Management needs a review of existing HRM practices. Discuss the role of Human Resource Management in Knowledge Management and describe th

What are the tools of marketing in words of mccarthy, What are the tools of... What are the tools of marketing in words of McCarthy? McCarthy classified such tools in four broad groups, that he called the four Ps of marketing: Price place, Produ

7ps, i have to write on people for my real estate company. i have to write on people for my real estate company.

Market segmentation, Market Segmentation Market Segmentation: "Divid... Market Segmentation Market Segmentation: "Dividing a market into separate groups with different needs, characteristics, or behaviour who may require separate products or mar

Positioning error, under positioning under positioning

Calculating ROI and ROS, 2 calculations 2 calculations

What is role of competitors in microenvironment of a company, What is the r... What is the role of competitors in microenvironment of a company? Competitors: The marketing concept declares that, to be successful, a company should give greater custo

Advantages of product branding to producers, Advantages to producers 1... Advantages to producers 1.       Easy to advertise: when the product or producers of an enterprise are marked with a particular brand, it makes very easy for the enterprise