Answer:
has a comparative advantage in producing kiwis.
Explanation:
Since New Zealand expends lesser labour in the production of kiwi's, they have a comparative advantage over Australia in the production of Kiwi while Australia has comparative advantage in the production of apples. According to the Ricardian model of comparative advantage, each country should specialize in the good comparative advantage in producing. Both New Zealand and Australia will both benefit from trade as New Zealand will trade kiwi for apple those diverting the labour required for apple production to the production of kiwi.
