Question

If Country A is an agricultural country and Country B has many cities and factories, it would make sense for both countries to set up car manufacturing plants. Country A to specialize in growing corn while Country B specializes in making cars. Country A to specialize in making cars while Country B specializes in growing corn. both countries to compete in growing more corn.

Answer 1

Country A to specialize in growing corn while Country B specializes in making cars.

Explanation:

• Being an agricultural economy country A will produce the goods that it specializes in as corn while country B which is specialized in manufacturing thus would make cars that run on city roads.  

• Both these countries can develop equally by making the products that they have expertise in and thus balance trade. This is highlighted in the theory of David Ricardo as the principle of comparative advantages.  

• Both the country can get the most possible benefits if it produces the goods that offer it the most advantages.

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• brainly.in/question/15786591 answered by  swaraj9195.

Answer 2

Answer:

Country A to specialize in growing corn while Country B specializes in making cars.

Explanation: