Which of the following scenarios best illustrates the relationship between factor endowments and economic interdependence in the context of absolute and comparative advantage?

To understand the relationship between factor endowments and economic interdependence, let's first define these terms. Factor endowments refer to the resources a country has, like land, labor, and capital. Absolute advantage occurs when a country can produce more of a good using the same resources compared to another country, while comparative advantage means a country can produce a good at a lower opportunity cost than another. For example, imagine Country A has a lot of fertile land for farming, making it excellent at producing wheat, while Country B has a strong workforce skilled in technology, allowing it to create computers efficiently. Country A will focus on wheat production, and Country B will focus on computers, leading to economic interdependence as they trade these goods with each other.