Comparative Advantage in Pineapple Production: Hawaii vs. Russia
What factors contribute to Hawaii's comparative advantage in pineapple production over Russia?
a. Favorable climate and geographical conditions
b. Accumulated expertise
c. Proximity to major markets
Answer:
Hawaii has a comparative advantage in pineapple production over Russia due to its favorable climate and geographical conditions, accumulated expertise, and proximity to major markets.
When analyzing the factors contributing to Hawaii's comparative advantage in pineapple production over Russia, it becomes evident that multiple key elements play a significant role in this economic scenario.
Favorable Climate and Geographical Conditions
One of the primary reasons behind Hawaii's comparative advantage in pineapple production is its favorable climate and geographical conditions. Hawaii benefits from a tropical climate characterized by abundant sunshine and rainfall, creating optimal growing conditions for pineapples. In contrast, Russia's colder climate is not conducive to pineapple cultivation, giving Hawaii a distinct edge in this agricultural sector.
Accumulated Expertise
Another crucial factor contributing to Hawaii's comparative advantage is its accumulated expertise in pineapple production. Over the years, Hawaii has invested in developing specialized knowledge and skills in growing and cultivating pineapples. This accumulated expertise allows Hawaii to maximize productivity and efficiency in pineapple production, outperforming Russia in this domain.
Proximity to Major Markets
Additionally, Hawaii's geographical location provides it with a logistical advantage in terms of proximity to major markets. Being strategically positioned near North America and Asia, Hawaii can easily access and export pineapples to these lucrative markets. This proximity reduces transportation costs and time, giving Hawaii a competitive edge over Russia in reaching consumers efficiently.
By considering these factors collectively, it becomes clear why Hawaii holds a comparative advantage in pineapple production over Russia. Its combination of favorable climate, accumulated expertise, and proximity to major markets positions Hawaii as a dominant player in the global pineapple market.