What is the most likely result of specialization in producing products A and B?

What is the most likely result of specialization in producing products A and B?

What is the MOST LIKELY result of specialization in producing Products A and B? The increased output means the U.S. and Japan can trade excess units of Products A and B.

Why does specialization often result from international trade?

Adam Smith said that countries should specialize in the goods and services in which they have an absolute advantage. When countries specialize and trade, they can move beyond their production possibilities frontiers, and are thus able to consume more goods as a result.

Why should the US and Japan trade products A and B even if they can both produce the products individually A The US has an absolute advantage in producing product B which means Japan should trade for it b Japan has an absolute advantage in producing product?

The U.S. and Japan trade products A and B, even if they can both produce the products individually because the U.S. has a comparative advantage in producing Product B and Japan in Product A, which means overall trade increases.

What is the result of nations specializing in the production of goods?

By specializing in the production of certain goods and services, nations can use their resources more efficiently.

Which country has a comparative advantage?

For example Ireland has a comparative advantage in cheese and butter due to climate and a large amount of land suitable for dairy cows. China has a comparative advantage in electronics because it has an abundance of labor.

Is comparative advantage true?

Comparative advantage refers to the ability to produce goods and services at a lower opportunity cost, not necessarily at a greater volume or quality. Comparative advantage is a key insight that trade will still occur even if one country has an absolute advantage in all products.

Who has an absolute advantage in coffee production who has an absolute advantage in nut production?

He could also choose to produce only nuts, in which case he can produce 20 pounds of nuts a week. Who has an absolute advantage in coffee production? Who has an absolute advantage in nut production? Jill has an absolute advantage in both coffee and nuts.