Belarus Has a Comparative Advantage in the Production of Linen

question 172

Multiple Choice

Belarus has a comparative advantage in the production of linen, but Russia has an absolute advantage in the production of linen. If these two countries decide to trade, which of the following is correct?

• A)Belarus should export linen to Russia.
• B)Russia should export linen to Belarus.
• C)For these two countries, trading linen would be a "stand-off" so they should trade another product.
• D)Without additional information about Russia, this question cannot be answered.