Answer the questions on comparative advantage below. a. Explain how countries in Africa, which have an abundance

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Answer the questions on comparative advantage below.

a. Explain how countries in Africa, which have an abundance of labour as a natural resource, can benefit from trade and allow countries to grow by specializing in the export of primary products.

b. What factors might have caused countries in Africa to have not exploited their comparative advantage so that they have remained relatively poor in comparison to some of the more rapidly developed nations?

c. Does the Prebisch–Singer hypothesis suggest that the theory of comparative advantage is of limited use in explaining modern trade between nations?

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Economics

ISBN: 9781473768543

5th Edition

Authors: Gregory Mankiw, Mark P. Taylor

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