The Concept of Comparative Advantage Suppose that in the U.s. 10 million roses can be produced with the same resources as 100,000 computers a Suppose also that in South America 10 million roses can be produced with the same resources as 30,000 computers a This example assumes that South american workers are less productive than U.S. workers Copyright C 2003 Pearson Education, Inc Slide 1-6Copyright © 2003 Pearson Education, Inc. Slide 1-6 ▪ Suppose that in the U.S. 10 million roses can be produced with the same resources as 100,000 computers. ▪ Suppose also that in South America 10 million roses can be produced with the same resources as 30,000 computers. ▪ This example assumes that South American workers are less productive than U.S. workers. The Concept of Comparative Advantage