Unit Test — Cumulative exam

Question 11 • MISD-World Geography-RECOVERY-B-2019-2020

Which of the following statements best illustrates how comparative advantage influences specialization?

Answer

A Mexican company builds several computer manufacturing facilities in Mexico City, even though few residents of this city are trained in computer manufacturing.

Brazil's climate is especially favorable for growing coffee, and Brazil is the world’s leading producer of coffee.

A movie director chooses to film his new movie in Phoenix, AZ.

Although Cuba's climate is good for growing tobacco, many Cubans have decided to grow corn instead because of the demand for biofuels.

Explanation

Comparative advantage means producing goods or services that can be made relatively efficiently because of favorable resources or conditions. Brazil’s climate is especially suited to growing coffee, so it specializes in coffee production and is the world’s leading producer. The other choices do not as clearly show specialization based on a natural production advantage.

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