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Ana gets a new refrigerator made in the United States. What is the country of origin of the refrigerator?

1) United States
2) China
3) Germany
4) Mexico

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User JoAMoS
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1 Answer

2 votes

Final answer:

The country of origin of Ana's refrigerator made in the United States is the United States. This example illustrates the benefits of countries specializing based on their comparative advantages, leading to efficient production and mutual economic benefits through international trade.

Step-by-step explanation:

The country of origin of Ana's new refrigerator, which is made in the United States, is the United States. This concept is related to production and international trade, where countries often specialize in the production of goods for which they have a comparative advantage. As per the provided example, Mexico specializes in producing shoes, and the United States specializes in making refrigerators. Through international trade, both countries can take advantage of each other's lower opportunity costs in production, leading to increased consumption and economic benefits for both.

Before trade, Mexico was producing both shoes and refrigerators, but after shifting towards its comparative advantage, it reduced refrigerator production in favor of more shoe production. Similarly, the United States, which has an advantage in productivity for both goods, specialized more in refrigerators after trade, allowing for more efficient allocation of resources and improved consumption possibilities for both nations.

answered
User Ranj
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