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If Labor in Mexico Is Less Productive Than Labor in the United

Question 105

Multiple Choice

If labor in Mexico is less productive than labor in the United States in all areas of production,


A) neither nation can benefit from trade.
B) Mexico can benefit from trade but the United States cannot.
C) the United States will have a comparative advantage relative to Mexico in the production of all goods.
D) both Mexico and the United States still can benefit from trade.

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