In economics, a comparative advantage occurs when a country can produce a good or service at a lower opportunity cost Opportunity Cost Opportunity cost is one of the key concepts in the study of economics and is prevalent throughout various decision-making processes. b. That dollar amount reflects a -6.6% decline year over year from 2018 but a 17.2% expansion since 2015. E. Comparative advantage in sleds. The traditional element of competitiveness is the coffee production costs in Brazil, which determines the comparative advantages of this country compared to others. The United States, as a developed country, has a lower cost of living than Indonesia. Comparative advantage in clarinets. However, the government under President Dilma Rousseff continues to believe that Brazil has to build up a world-class manufacturing base in … Winter Term 2014 Comparative Advantage Study Questions (with Answers) Page 3 of 6 (8) 6. Suppose that Australia and Brazil have the outputs per worker in producing sleds and clarinets shown in the table at the right. Indonesia, as a developed country, has a highly paid and experienced workforce. This is the correct answer. A country has an absolute advantage over another country if it can produce a given product using fewer resources than the other country needs to use. The phenomenal export success of Brazil's agricultural products and minerals and the lacklustre condition of its manufacturing industries can force Brazil to reassess its comparative advantage. d. c. Absolute advantage in sleds. The products the United States has a revealed comparative advantage in compared to Brazil are more diverse, from capital goods to chemicals. Brazil’s lowest weighted average tariff among the good represented on the chart is 6.24 percent for chemicals; the highest is … Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur. The United States, as a developing country, has a high comparative advantage in manufacturing. It is also the eighth largest in the world. Indonesia, as a developing country, has a less advanced manufacturing infrastructure. Indicator. As the global ethanol trade is estimated to rise 25-fold by 2020, Brazil’s comparative advantage in agricultural products is destined to shine. Trade Flow. Table The Comparative Advantage of the United States, European D. If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively. It is a democratic country and has a stable political system. The EU seemed to have a comparative advantage in automotive products and chemicals, and a comparative disadvantage in all other commodity groups.  It allows you to compare the gross domestic product of … than another country.   In 2019, it produced $3.22 trillion in goods and services, as measured by purchasing power parity. Revealed comparative advantage By Country Product to World 1988-2018 By Country Revealed comparative advantage for All Products World between 1988 and 2018 Country / Region. The Brazilian climate conditions seem to have been made for the plantation of the grain. Brazil’s exported goods totaled $174.8 billion during the first 10 months of 2020. It has a very stable currency. By. Brazil is the largest economy in South America. by Flagpictures.org The largest country by population and land area within both South America and Latin America, Brazil shipped an estimated $224 billion worth of goods around the globe in 2019. Japan seemed to have a very strong ... 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