Lesson 1.3 Production

Ovide, Jim, Jenny, Cheng

Ovide, Jim, Jenny, Cheng

by Shaoxuan (Ovide) Sun -
Number of replies: 0

1. Because Argentina has an absolute advantage in producing beef, it is better to import from Argentina.

2. Argentina increased the amount of beef it exported, which is one way to boost the country's economy, while the US lost the amount it wanted to export. Therefore, the US beef industry would lose market share and revenue. This would also mean the US lost its dominance due to the invention of refrigeration in Argentina. 

3. Primary industries would be the farms or farmers who feed and grow the cows. Secondary industries would be the factories that cut up the cow and distribute it to grocery stores. Tertiary industries would be grocery stores, butchery, etc. 

4. Argentina should import beef from the USA because the USA has a higher comparative advantage in beef production, and the USA should import corn from Argentina because Argentina has a higher comparative advantage in corn production.