Question

international trade — end of chapter problem
colombia’s main exports include coffee, flowers, bananas, and tropical fruit.

colombia likely exports these particular goods because
○ colombia is more efficient in the production of goods and services in general than other countries. it is therefore not surprising that colombia is more efficient in the production of the goods listed and exports them.
○ climatic conditions—mild temperatures, substantial rainfall, plentiful sunlight—make colombia relatively more suitable for the cultivation of these goods than other countries.
○ colombians have more of a taste for these goods than people in other countries. colombia therefore produces more of them, with the surplus sent abroad.
○ countries, including the united states, have strong demand for these goods but an insufficient capacity to produce them. production of these goods is therefore outsourced to countries such as colombia.

Explanation:

• The first option is incorrect because a country doesn't need to be generally more efficient in all goods/services to export specific ones; it's about comparative advantage in those specific goods.
• The second option is correct. Coffee, flowers, bananas, and tropical fruit require specific climatic conditions (mild temperatures, rainfall, sunlight). Colombia's climate is well - suited for these, giving it a comparative advantage in producing them, so it exports them.
• The third option is incorrect. Exporting is about having a surplus for international markets, not just domestic taste. Even if Colombians liked them, if production was just for domestic consumption, there might not be a surplus for export.
• The fourth option is incorrect. These goods are agricultural products that depend on natural resources (climate) rather than being outsourced. Outsourcing is more common in manufacturing or services, not agricultural products that need specific natural conditions.

Answer:

B. climatic conditions—mild temperatures, substantial rainfall, plentiful sunlight—make Colombia relatively more suitable for the cultivation of these goods than other countries.