Lets take a simple example of two countries and two goods, Ask an Expert

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Let's take a simple example of two countries and two goods. Country 1 produces 10 units of Wine and 5 units of cloth in 1 hour. Country 2 produces 4 units of wine and 1 unit of cloth in 1 hour. Who has absolute advantage and who has comparative advantage in Wine and Cloth respectively? Who will export/import which good to/from the other country? Explain Answer

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91559756

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