At which of the following prices, if any, can India and Indonesia both gain from trade? a. 1/5 units of bananas per unit of rice. b. 1/3 units of bananas per unit of rice. c. 3/5 units of bananas per unit of rice. d. None of the above.

The correct answer is  c. 3/5 units of bananas per unit of rice.

Explanation:

Bananas are mainly produced in Africa and Latin America, while other types of bananas are grown in Africa and Asia. Latin America is the first region in terms of Cavendish production, followed by Asia. Most of the other bananas for dessert are grown in Latin America and Asia. The world's leading producer of Cavendish bananas is India, followed by Ecuador, China, Colombia and Costa Rica. These 5 countries together represent more than half of Cavendish's world production.

The international banana trade is mainly based on the export of Cavendish bananas. Cavendish replaced Gros Michel in international trade due to its resistance to Panama's disease and its higher productivity (up to 60 tons per hectare in modern plantations). Cavendish bananas destined for export markets are produced all over the world today, both in small farms and in large plantations of thousands of hectares.

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