Question

Suppose England exports cars to Australia and imports cheese from Mexico. This situation suggests that Group of answer choices England has an absolute advantage relative to Mexico in producing cheese, and Australia has an absolute advantage relative to England in producing cars. England has a comparative advantage relative to Australia in producing cars, and Mexico has a comparative advantage relative to England in producing cheese. England has an absolute advantage relative to Australia in producing cars, and Mexico has an absolute advantage relative to England in producing cheese. England has a comparative advantage relative to Mexico in producing cheese, and Australia has a comparative advantage relative to England in producing cars.

Answer 1

If England exports cars to Australia and imports cheese from Mexico. Then,  "England has an absolute advantage relative to Australia in producing cars, and Mexico has an absolute advantage relative to England in producing cheese".

What is import and export of goods?

Exporting is the process of selling goods and services that are produced or sourced domestically in other nations.

The advantages of exporting are-

• reaching out on a worldwide level.
• higher profits.
• risk reduction
• increased market share and competition.
• the benefits of scale.
• government assistance.

Purchasing products and services abroad and bringing them back home is referred to as importation.

The importance of importing are-

• launching fresh goods on the market.
• lowering expenses
• being a pioneer in the field.
• providing goods of excellent quality.

know the difference between imports and exports, here

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