Assume the following productivity data for the US, Brazil and Mexico with regard to pineapple and coffee production:
Pineapples Coffee
US (daily output per worker) 30 lb 15 lb
Brazil (daily output per worker) 40 lb 75 lb
Mexico (daily output per worker) 16 lb 25 lb
What trade, if any, would we see between the US and Brazil?
a. No trade because Brazil has the absolute advantage in both products
b. Brazil will specialize in coffee and trade coffee for US pineapples
c. Brazil will specialize in pineapples and trade pineapples for US coffee
d. Brazil will buy both coffee and pineapples from US
