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The production possibility frontier in the field of macroeconomics is a representative of the point at which a nation’s economy is efficiently thriving in the production of its goods as well as services, and as a result, can manage to allocate the resources such as labor and capital in the best means possible. Primarily, the production possibility frontier (PPF) is essential to the economy of a country since it indicates whether the quantities of goods or services are efficiently produced or not. If the PPF suggests another value of the amount produced contrary to what is produced in reality, it hints that the economy will dwindle (Brea‐Solís, Casadesus‐Masanell, & Grifell‐Tatjé, 2015). In essence, the PPF is an indicator of the limits existing to production and the economy of a given country should be prepared enough to decide on what combination of goods as well as services need to be correctly produced.
The PPF graphs or curves showcases the maximum levels of production possible for a given level of the other by assuming the existing state of technology adopted. Based on the decision called for by the indication of a PPF curve, the economy of a country can be made to divert the resources from other goods for one good to be only produced by producing fewer quantities of the others.
Graphically, the production Possibility frontier for the United States and Brazil is best done by measuring soda vertically or using the vertical scale while clothing is measured horizontally.

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Based on the information provided, the US can produce 250,000 cans of soda and 65,000 units of clothing while Brazil can make 50,000 cans of soda along with 100,000 units of cloth in the absence of trade.

Figure SEQ Figure * ARABIC 1: A graph showing the PPF for both Brazil and the United States
According to the PPFs above, the US produces as well as enhances the consumption of 125,000 cans of soda as well as produces 32,500 units of cloth in the absence of trade as point A indicates in the PPF of the USA. On the other hand, Brazil makes and at the same time consumes 25,000 cans of soda as well as 50,000 units of cloth as point B in the figure above shows. In the determination of whether a country should specialize in a specific goods and services, a computation of the opportunity costs (OC) of the cans of soda together with the units of clothing is as follows.
For the US, the OC of clothing is derived by dividing 250,000 by 65,000 which gives 3.85 cans of soda. The OC of soda is also reached by taking 65,000 and diving it by 250,000 to give 0.26 units of clothing. Similarly, for the case of Brazil, the OC of clothing is arrived at by taking 50,000 and dividing it by 100,000 to give 0.5 cans of soda. The OC of soda is derived by dividing 100,000 by 50,000 to get two units of clothing
According to the concepts of absolute as well as comparative advantages, the PPF shows that the United States of America should only major or specialize in producing soda because of the low costs of production as indicated by the lower opportunity cost of 0.26 than Brazil. Brazil can specialize in the production of clothing. Primarily, this is because the output of cans by the US indicates the highest potential of attaining an outcome which can be more viable with the rate of production (Cigno, 2015). It is the level of production which seems to play a significant role in indicating the country that should or not specialize in the production of certain goods and services especially when it comes to an analysis using the production possibility frontier (PPF). It is difficult to tell which country is either labor intensive or capital intensive. Nevertheless, the production of clothing appears to be more labor-intensive than the cans of soda since it needs many workers which translates to vast sums of money being spent on the hiring of human resources.
Without a doubt, the marginal impact of transformation impact refers to the rate whereby a given good must sacrifice for it to produce another product. For Brazil, the marginal rate of transformation impact is arrived by taking 100,000 and dividing it by 50,000 to get two units of clothing. For the USA, the marginal rate of transformation impact is determined by dividing 65,000 by 25,000 to give 0.26 units of clothing.
Ideally, a nation is said to be labor abundant whenever its relative endowment of work as a resource is large in comparison to others using the metrics of wage or quantity definition. By basing the analysis on the price of minimum wage for both the two countries, factoring the information indicates that Brazil emerges as a labor-abundant country. On the other hand, the US is apparently the capital-abundant nation because it accumulates more regarding revenue than Brazil.
Trade in a country whether domestic or international plays a critical role in the alleviation of problems that deters development. As such, it can assist in the reduction of poverty in Brazil as well as other Third World countries in several ways. Trade boosts development not counting its ability to enhance a reduction in poverty by way of generating growth by taking advantage of commercial opportunities as well as investment. Besides, trade facilitates the diversification of exports by allowing a country such as Brazil to access new materials and markets that lead to the expansion of production possibilities (Cigno, 2015).

References
Brea‐Solís, H., Casadesus‐Masanell, R., & Grifell‐Tatjé, E. (2015). Business model evaluation: quantifying Walmart’s sources of advantage. Strategic Entrepreneurship Journal, 9(1), 12-33.
Cigno, A. (2015). Trade, foreign investment, and wage inequality in developing countries. IZA World of Labor.

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