The United States Has an Absolute Advantage in Producing Sugar

question 269

Essay

The United States has an absolute advantage in producing sugar over all of the other sugar producing countries. Does this fact mean that we should not import any sugar from the other countries?

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Definitions:

Rule of 70

A formula to estimate the number of years required to double the value of something at a constant growth rate, calculated as 70 divided by the growth rate.

Interest

The cost incurred for the benefit of borrowing funds, usually presented as a yearly percentage rate.

Risk Averse

The tendency of individuals to prefer certainty over uncertainty, avoiding risks where possible, especially in financial decisions.

Dividend

A portion of a company's earnings distributed to its shareholders.