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International trade and comparative advantage

Assume the given output and labor hours for Russia and Germany in producing Wheat and Cloths

Russia Wheat 3 Cloths 6 Labor Hours 100

Germany Wheat 2 Cloths 2 Labor Hours 50

Q1. Which country has the comparative advantage in wheat?

Q2. Which country has the comparative advantage in cloth?

Q3. Which country has the absolute advantage in wheat?

Q4. Which country has the absolute advantage in cloth?

Q5. Which good will Russia specialize in?

Q6. Which good will Germany specialize in?

Q7. Give the most obvious terms of trade.

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: International trade and comparative advantage

Reference No:- TGS01744271

Have a Question? (oR Write a Review)

Recent Questions Asked Macroeconomics

Q : Computing the resource costs or opportunity costs

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Prepared by a verified Expert

Macroeconomics: International trade and comparative advantage

Reference No:- TGS01744271

Recent Questions Asked Macroeconomics

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