Suppose Jamaica has an absolute advantage over other countries in producing sugar,but other countries have a comparative advantage over Jamaica in producing sugar.If trade in sugar is allowed,Jamaica
A)will import sugar.
B)will export sugar.
C)will either import sugar or export sugar,but it is not clear from the given information.
D)would have nothing to gain either from exporting or importing sugar.

Question

Quizplus · Accepted Answer

Even though Jamaica has an absolute advantage in producing sugar, it would still import sugar from other countries because they have a comparative advantage in producing sugar, which means they can produce it at a lower opportunity cost than Jamaica. By importing sugar, Jamaica can then allocate their resources towards producing goods and services that they have a comparative advantage in, improving their overall welfare.

Suppose Jamaica Has an Absolute Advantage Over Other Countries in Producing