The table below shows how much of each of two products can be produced by two countries with the same amount of resources.
| Tablets | Smartphones | ||
|---|---|---|---|
| Canada | 12 | or | 4 |
| South Korea | 15 | or | 10 |
Which one of the following statements is correct?
South Korea has a comparative advantage in the production of both tablets and smartphones.
Canada has a comparative advantage in the production of tablets.
The opportunity cost of producing smartphones is higher in South Korea than in Canada.
Trade will not take place because South Korea has an absolute advantage in both goods.
