Question

Which of the following is true? a. Mutual gains could be realized if the United States specialized in producing food and South Korea in producing clothing. b. Mutual gains could be realized if the United States specialized in clothing production and South Korea in food production. c. South Korean workers are the high-cost producers of clothing. d. None of the above are true.

Answer 1

Answer:

A) Mutual gains could be realized if the United States specialized in producing food and South Korea in producing clothing.

Explanation:

The United States has more available land for farming, while South Korea has many factories.