shanice13
shanice13
07.10.2019 • 
Business

Briefly explain whether you agree with the following argument: "unfortunately, bolivia does not have a comparative with respect to the united states in the production of any good or service." (hint: you do not need any specific information about the economies of bolivia or the united states to be able to answer this question.) a. although bolivia may not have a comparative advantage in the production of any good or service, this is not unfortunate because what matters for trade is that it has an absolute advantage. b. although bolivia may not have a comparative advantage in the production of any good or service, this is not unfortunate because what matters for trade is that it has a competitive advantage. c. if the u.s. trades at all with bolivia, then the argument above is false. there would be no trade unless both countries were made better off, and this would imply bolivia has the comparative advantage in the production of at least one good or service. d. the argument above is reasonable given that bolivia's gdp is so small relative to the united states.

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