If Labor in Mexico Is Less Productive Than Labor in the United

question 96

Multiple Choice

If labor in Mexico is less productive than labor in the United States in all areas of production,

• A)then neither nation can benefit from trade.
• B)then Mexico can benefit from trade but the United States cannot.
• C)then the United States will have a comparative advantage relative to Mexico in the production of all goods.
• D)then both Mexico and the United States still can benefit from trade.

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