Question

Using the chart, identify an example of comparative advantage for the United States over either Country A or Country B. Be sure to identify the product and the country. Explain how the availability and use of a natural resource may impact advantage.

Chart is attached below

Answer 1

all I need to know is with what product and what country does the U.S. have a comparative advantage

Answer 2

@dan815 @aum ... anyone????

Answer 3

I am pretty sure it is:
The United State has a comparative advantage in making oil in comparison to Country B.

But I am not positive!!!

Answer 4

@e.mccormick @Destinymasha

Answer 5

Well,
first between U.S.A. and country A :-
U.S.A. - For every 1 barrel of crude oil it must give away 1.2 ton of coal;
Country A - For every 1 barrel of oil it must give away 0.83 ton of coal.

Therefore ,country A has comparative advantage over U.S.A. in making crude oil.
Since,an inverse mathematical relationship exists,
U.S.A. has comparative advantage over country A in in making coal.


Now,
between U.S.A. and country B:-
U.S.A.- For every 1 barrel of crude oil it must give away 1.2 ton of coal;
Country B - For every 1 barrel of crude oil it must give up 0.42 ton of coal.

Therefore,country B has comparative advantage over U.S.A. in making crude oil.
Since,an inverse mathematical relationship exists,
U.S.A. has comparative advantage over country B in in making coal.


I don't know much about use,but I think that the country which has more availability (probably )has a comparative advantage over other countries.
International trade is based upon comparative advantage and the fact that Arab countries which have more availability of oil ,indeed have a comparative advantage in oil,supports my argument.

I think I am right but I am also a student,so get my answer verified with a teacher before proceeding with it.