Ask Question
Social StudiesSocial Studies
26 August, 12:30

Brazil is leading producer of sugarcane and the United States is the leading producer of crude oil. Based on this information, why should Brazil trade with the United States?

A) Brazil has an absolute advantage in sugarcane and crude oil.

B) The United States has an absolute advantage in sugarcane and crude oil.

C) Brazil has an absolute advantage in crude oil and the United States has an absolute advantage in sugarcane.

D) Brazil has an absolute advantage in sugarcane and the United States has an absolute advantage in crude oil.

+4
Answers (2)
  1. 26 August, 12:48
    0
    D is the correct answer
  2. 26 August, 12:49
    0
    D) Brazil has an absolute advantage in sugarcane and the United States has an absolute advantage in crude oil.

    Explanation:

    According to international trade theory, countries must specialize in the production of goods in which they have a comparative advantage over other countries. For example, if Brazil has an absolute advantage over the US in sugarcane production, it means that the country has greater sugarcane production efficiency. In turn, if the US has an absolute advantage over Brazil in oil production, it also means that the US has greater oil production efficiency. Thus, each of the countries must produce the good in which they have the absolute advantage to export it, and must import the other type of good. In this case, the US would be better off exporting oil and importing sugarcane from Brazil, and vice versa.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Brazil is leading producer of sugarcane and the United States is the leading producer of crude oil. Based on this information, why should ...” in 📗 Social Studies if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
1. A chemical engineer is someone who
Answers (1)
In thoreau's view what is the ethical responsibility of a government to a minority population
Answers (1)
A couple is going to marital counseling. during a session, the husband states that, after working long hours at the office, he just wants to come home and relax.
Answers (1)
Interesting facts about hurricanes
Answers (1)
For his graduation ceremony, when brady decided to give his valedictory address on the topic of opposition to the rising costs of university tuition, brady failed to
Answers (1)
New Questions in Social Studies
The Neolithic Revolution first occurred in the societies of southwestern Asia. True or False?
Answers (2)
In any minor change by house of congress, the next usual step is for the legislation to go back to the firsy house for
Answers (1)
Why do people often treat the idea of a nation and the idea of a culture as synonymous?
Answers (1)
What was one of the first moves the United States made in the War of 1812?
Answers (1)
Barnaby's story is that his psychological functioning peaked in midlife, plateaued until his late fifties, and then modestly declined for a while. At the end of his life his functioning declined dramatically. His story reflects:
Answers (1)
Home » Social Studies » Brazil is leading producer of sugarcane and the United States is the leading producer of crude oil. Based on this information, why should Brazil trade with the United States? A) Brazil has an absolute advantage in sugarcane and crude oil.
Sign Up Forgot Password?