Suppose the United States and Japan Are the Only Two

Multiple Choice

Suppose the United States and Japan are the only two countries and each can produce two goods-wheat and cars. If the United States has an absolute advantage in wheat and Japan has an absolute advantage in cars, we know that

A) there will be no trade because neither country has a comparative advantage in either good.
B) one of the countries will have a comparative advantage in wheat, but we can't tell which one without more information.
C) the United States must have a comparative advantage in cars and Japan in wheat.
D) the United States has a comparative advantage in wheat and Japan has a comparative advantage in cars.