Production possibility frontier is graphical representation of combinations of amounts of two goods or services that an economy can produce by transferring resources from one good or services to another and it also referred as the production possibilities curve (Production Possibilities Frontier). The production possibility frontier between Brazil and the United States are very different because the United States have more places and finding people that want make clothing is very scares because the people of the United States believe the clothing make the person but not very important, but soda is not a great priority but a lot of the factories in the United States handle the soda for their region of the world.
Brazil has some suitable places for factories to handle the ability to make clothing and soda. The factories will make …show more content…
The United States would be less affected, but many countries depend on another country for their good and services. It would also the affect the people that comes to various countries to found work. Detailed analysis of the statistics of merchandise trade between Brazil and the United States reveals extensive underpricing of exports and overpricing of imports, which has the effect of transferring substantial amounts of money out of Brazil and into the United States (John Zdanowicz, 2010). Brazil would have a great issue if they don’t trade with other countries because they don’t have resources from other countries, but export cost will be more expensive. Brazil and many of its neighbors have tended to view Brazilian trade preference options as geographically defined and relatively