If Argentina has a comparative advantage over Brazil in beef relative to coffee, Argentina will specialize in beef production.

Question

Quizplus · Accepted Answer

If Argentina has a comparative advantage in beef production, it means that they can produce beef at a lower opportunity cost than Brazil. Therefore, it would make economic sense for Argentina to specialize in beef and trade with Brazil for coffee, where Brazil has a comparative advantage.

If Argentina Has a Comparative Advantage Over Brazil in Beef