Assume that two countries, Venezuela and Suriname, can produce Bananas or Cars with the
resources available in their countries. The maximum amount of each product produced in each country is provided in the table below.
2. Which country has a should specialize in the production of cars? Which country should
specialize in the production of bananas?
3. Assume that each country specializes production according to their comparative advan-
tage. Let's say that one trade oer leaves Venezuela with 20 Bananas and 20 Cars, while
Suriname gets 20 Bananas and 10 Cars. Would Venezuela agree to this oer? Why or
why not?
4. Assume that each country specializes production according to their comparative advan-
tage. Let's say that another trade oer leaves Venezuela with 30 Bananas. How many
Cars would Venezuela need in order to accept an oer that leaves them with 30 Bananas?