Answer:
C. Sweden will produce more chocolate than it would produce in the absence of trade.
Explanation:
Assume that Sweden has a comparative advantage in chocolate and Italy has a comparative advantage in wine. Also assume that Sweden has absolute advantage in both chocolate and wine. If the 2 countries specialize and trade so as to maximize benefits of specialization and trade, then <u>Sweden will produce more chocolate than it would produce in the absence of trade</u>.
If the 2 countries involve in trade Sweden will focus more in the production of the goods it has comparative advantage in producing and produce more to meet export demand to Italy.
Law of comparative advantage states that a country should produce more of the goods it has comparative advantage in producing and trade it for the good it has lesser comparative advantage in producing
I'm pretty positive it is B.) the fall of the Berlin Wall
Answer:
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Explanation: