c. Absolute advantage in sleds. Please note the exports, imports and … Indonesia, as a developed country, has a highly paid and experienced workforce. In economics, a comparative advantage occurs when a country can produce a good or service at a lower opportunity cost Opportunity Cost Opportunity cost is one of the key concepts in the study of economics and is prevalent throughout various decision-making processes. Investors investing in Brazil not only would see tremendous gain, but can also consider becoming a Brazilian resident as the cost of living is … The traditional element of competitiveness is the coffee production costs in Brazil, which determines the comparative advantages of this country compared to others. Japan seemed to have a very strong ... China, and Brazil have a comparative advantage (i.e., in which they had a trade surplus) in 2010. However, the government under President Dilma Rousseff continues to believe that Brazil has to build up a world-class manufacturing base in … What is a Comparative Advantage? E. Table The Comparative Advantage of the United States, European That dollar amount reflects a -6.6% decline year over year from 2018 but a 17.2% expansion since 2015. D. If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively. The EU seemed to have a comparative advantage in automotive products and chemicals, and a comparative disadvantage in all other commodity groups. By. To see what he meant, we must be able to distinguish between absolute and comparative advantage. than another country. b. Brazil is the largest economy in South America. The Brazilian climate conditions seem to have been made for the plantation of the grain.  It allows you to compare the gross domestic product of … Suppose that Australia and Brazil have the outputs per worker in producing sleds and clarinets shown in the table at the right. Comparative advantage in sleds. Comparative advantage in clarinets. The opportunity cost is the value of the next best alternative foregone.   In 2019, it produced $3.22 trillion in goods and services, as measured by purchasing power parity. Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur. Brazil has a very good political setup. d. The United States, as a developed country, has a lower cost of living than Indonesia. It has a very stable currency. It is also the eighth largest in the world. Then Brazil has a a. Brazil’s exported goods totaled $174.8 billion during the first 10 months of 2020. It is a democratic country and has a stable political system. The United States, as a developing country, has a high comparative advantage in manufacturing. The phenomenal export success of Brazil's agricultural products and minerals and the lacklustre condition of its manufacturing industries can force Brazil to reassess its comparative advantage. This is the correct answer. Winter Term 2014 Comparative Advantage Study Questions (with Answers) Page 3 of 6 (8) 6. As the global ethanol trade is estimated to rise 25-fold by 2020, Brazil’s comparative advantage in agricultural products is destined to shine. A country has an absolute advantage over another country if it can produce a given product using fewer resources than the other country needs to use. Brazil’s lowest weighted average tariff among the good represented on the chart is 6.24 percent for chemicals; the highest is … The products the United States has a revealed comparative advantage in compared to Brazil are more diverse, from capital goods to chemicals. Year. 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