Question

Peru and bolivia account for almost 97% of the production of quinoa seed, and most of it is sold to the u.s., japan, and other wealthy nations. according to a former colorado state agronomist who helped introduce the product into the u.s. several years ago, "this food is about the most perfect you can find for human diets." although there are other areas where the seed will grow (including higher elevations in colorado), the majority of the quinoa sold in the u.s. is imported from peru and bolivia. these two nations have a(n) ________________ in the production of quinoa.

Answer 1

The majority of the quinoa sold in the u.s. is imported from Peru and Bolivia. These two nations have a comparative advantage in the production of quinoa. A country is said to have a comparative advantage in the good that has the lowest opportunity cost. That is, it has a comparative advantage in whichever good it sacrifices the least to produce. Example, Peru & Bolivia has a comparative advantage in the production of Quinoa.