A country should never export a good in which it has a comparative disadvantage.
Labor is mobile across industries.
Assume that food is by far the most important item in a worker's consumption basket. Give two reasons why a country might have higher wages compared to those of its trading partners. Production of televisions requires 20 units of labor and 4 units of land. Rice requires 1 unit of labor and 4 units of land per pound. Suppose that the US has 120 million workers and 200 million acres, while Mexico has 40 million workers and 50 million acres.