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Suppose That Brazil Has a Comparative Advantage in Coffee and Mexico

Question 14

Multiple Choice

Suppose that Brazil has a comparative advantage in coffee and Mexico has a comparative advantage in tomatoes.Which of the following groups would be worse off if these countries specialize and trade?


A) Mexican coffee producers.
B) Brazilian coffee producers.
C) Mexican tomato producers.
D) All groups are better off when specialization and trade take place.

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