Table 2-20
Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand.
-Refer to Table 2-20. If the two countries specialize and trade, who should export wristwatches?
A) There is no basis for trade between the two countries.
B) Japan
C) Thailand
D) They should both be importing wristwatches.

Question

Table 2-20
  Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand.
-Refer to Table 2-20. If the two countries specialize and trade, who should export wristwatches?
A) There is no basis for trade between the two countries. 
B) Japan 
C) Thailand 
D) They should both be importing wristwatches.

Quizplus · Accepted Answer

Thailand should export wristwatches if it has a comparative advantage in producing them, meaning it can produce wristwatches at a lower opportunity cost than Japan.

Table 2-20 Table 2-20 Shows the Number of Labor Hours