Based on the comparative cost ratios implied in Figure 35.2, it is clear that
A. Mexico should import all of its golf shoes from the United States.
B. The United States should import all of its baseballs from Mexico.
C. The United States should specialize in producing golf shoes, and Mexico should specialize in producing baseballs.
D. The United States has a comparative advantage in baseballs and Mexico has a comparative advantage in golf shoes.
Answer: D
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