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Unformatted text preview: advantage. Future Golden Knight Maid [Their jobs] With trade, a few people lose a lot, but, [Lower prices & more
c lot of
a hoices] people gain a little. Free trade is like improved technology
[There are some job losses, but many more job gains]
climate Comparative advantage due to natural resources &
dvantage United States
Mexico Wheat, corn, and cereals
Oranges and grapefruit
Tomatoes Country Comparative advantage largely due to physical capital,
human capital, and scientific knowledge United States
South Korea Aircraft, computers, industrial chemicals, plastics, & chemicals Automobiles, steel, electronics
Machine tools, scientific instruments, luxury automobiles
Comparative advantage and differences
in opportunity costs are the basis for
specialized production and trade.
Ships • Should Wisconsin grow oranges?
• Should Florida make cheese?
• No & No! [We don’t want the Florida...
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This note was uploaded on 07/20/2012 for the course ECON 2106 at GCSU.