Decide which of these statements is most likely to be true.?

Question

decide which of these statements is most likely to be true.

A. Both the United States and Pakistan have an absolute advantage in the production of cloth and clothing

B. Pakistan has an absolute advantage in the production of cloth and clothing, and the United States has a comparative advantage in the production of these goods.

C. Both Pakistan and the United States have a comparative advantage in the production of cloth and clothing.

D. Pakistan has a comparative advantage in the production of cloth and clothing, and the United States has an absolute advantage in the production of these goods.

Answer 1

uhhh... B?

Answer 2

I suspect you need to supply some figures to get correct answer.

The literature about advantage in international trade has different points of view; Porter; Herscher-Ohlim; Ricardo, etc.; and each approach can explain the same concept down little different topic. So, it is vital to precise the context to apply correctly the concepts of comparative advantage, competitive advantage, absolute advantage, relative advantage, static advantage, dynamic advantage.

Answer 3

D.  United States has greater command of resources and infrastructure.