Suppose That Brazil Has a Comparative Advantage in Coffee and Mexico

question 14

Multiple Choice

Suppose that Brazil has a comparative advantage in coffee and Mexico has a comparative advantage in tomatoes.Which of the following groups would be worse off if these countries specialize and trade?

• A)Mexican coffee producers.
• B)Brazilian coffee producers.
• C)Mexican tomato producers.
• D)All groups are better off when specialization and trade take place.

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Definitions:

Cash Receipts

Money received by a business during a given period, from activities such as sales, services, loans, or equity infusions.

Cash Sales

Transactions in which customers pay for goods or services at the time of purchase with cash.

Cash Register

A device, either mechanical or electronic, designed to record and compute transactions where sales occur.

Internal Control

Systems and processes implemented by a company to ensure the reliability of financial reporting, compliance with laws and regulations, and efficiency of operations.