This is the correct answer. Brazil is the largest economy in South America. Suppose that Australia and Brazil have the outputs per worker in producing sleds and clarinets shown in the table at the right. D. If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively. By. The phenomenal export success of Brazil's agricultural products and minerals and the lacklustre condition of its manufacturing industries can force Brazil to reassess its comparative advantage. Investors investing in Brazil not only would see tremendous gain, but can also consider becoming a Brazilian resident as the cost of living is … It is a democratic country and has a stable political system. What is a Comparative Advantage? Revealed comparative advantage By Country Product to World 1988-2018 By Country Revealed comparative advantage for All Products World between 1988 and 2018 Country / Region. The opportunity cost is the value of the next best alternative foregone. Brazil’s lowest weighted average tariff among the good represented on the chart is 6.24 percent for chemicals; the highest is … d. Winter Term 2014 Comparative Advantage Study Questions (with Answers) Page 3 of 6 (8) 6. Indonesia, as a developing country, has a less advanced manufacturing infrastructure. c. Absolute advantage in sleds. Comparative advantage in sleds.  It allows you to compare the gross domestic product of …   In 2019, it produced $3.22 trillion in goods and services, as measured by purchasing power parity. Year. Japan seemed to have a very strong ... China, and Brazil have a comparative advantage (i.e., in which they had a trade surplus) in 2010. Brazil’s exported goods totaled $174.8 billion during the first 10 months of 2020. Table The Comparative Advantage of the United States, European The products the United States has a revealed comparative advantage in compared to Brazil are more diverse, from capital goods to chemicals. b. To see what he meant, we must be able to distinguish between absolute and comparative advantage. Indonesia, as a developed country, has a highly paid and experienced workforce. Then Brazil has a a. However, the government under President Dilma Rousseff continues to believe that Brazil has to build up a world-class manufacturing base in … As the global ethanol trade is estimated to rise 25-fold by 2020, Brazil’s comparative advantage in agricultural products is destined to shine. Comparative advantage in clarinets. That dollar amount reflects a -6.6% decline year over year from 2018 but a 17.2% expansion since 2015. The EU seemed to have a comparative advantage in automotive products and chemicals, and a comparative disadvantage in all other commodity groups. The United States, as a developing country, has a high comparative advantage in manufacturing. Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur. Trade Flow. In economics, a comparative advantage occurs when a country can produce a good or service at a lower opportunity cost Opportunity Cost Opportunity cost is one of the key concepts in the study of economics and is prevalent throughout various decision-making processes. It has a very stable currency. Indicator. by Flagpictures.org The largest country by population and land area within both South America and Latin America, Brazil shipped an estimated $224 billion worth of goods around the globe in 2019. A country has an absolute advantage over another country if it can produce a given product using fewer resources than the other country needs to use. Brazil has a very good political setup. E. It is also the eighth largest in the world. 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