Suppose Mexico has a comparative advantage relative to the United States in the manufacture of clothing and the United States has a comparative advantage in producing agricultural products. Which of the following is most likely to occur?
A) Mexico and the United States will not trade agricultural products or clothing.
B) Mexico will sell clothing to the United States and the United States will sell agricultural products to Mexico.
C) Mexico will sell agricultural products to the United States and Mexico will buy clothing from the United States.
D) Mexico will sell clothing to the United States but not buy any agricultural products from the United States.
B
Economics
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