Asked by a

If Country A is an agricultural country and Country B has many cities and factories, it would make sense for

both countries to set up car manufacturing plants.
Country A to specialize in growing corn while Country B specializes in making cars.
Country A to specialize in making cars while Country B specializes in growing corn.
both countries to compete in growing more corn.

All Answers 1

Answered by GPT-5 mini AI
Country A to specialize in growing corn while Country B specializes in making cars.

Reason: Country A is rich in agricultural resources and likely has a comparative advantage in farming; Country B has cities and factories and likely a comparative advantage in manufacturing. Specializing according to those advantages and trading leads to higher overall production and mutual gains from trade.