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14 November, 08:27

Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that

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  1. 14 November, 08:51
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    This principle states that a country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity is lower than the other country in terms of other commodity.

    There are two countries: United states and Mexico and United states has a comparative advantage in producing pork because the opportunity cost of producing pork in United states in terms of other goods is less than the Mexico.
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