The table shows the tons of steel or number of computers a worker can produce pe

Question

The table shows the tons of steel or number of computers a worker can produce per week in Germany and South Korea. Use this table to answer the question. See Desktop Computer Germany South Korea 4 Germany should O O O O specialize in computer production, export computers, and import steel. specialize in steel production, export steel, and import computers. produce both goods because it has an absolute advantage in the production of both goods. produce both goods because neither country has a comparative advantage.

Explanation / Answer

Germany can produce more of steel than South Korea and both countries can produce equal amounts of computer. It means that Germany has absolute advantage in the production of steel. Since the production of computers is equal in both countries, So germany also has a comparative advantage in the production of steel.

Thus Germany should specialize in steel production, steel and import computers.

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