Summary of product condition in countries i and ii
Amount of labour days, cocoa(tons) Cloth(tons)
Country i 200 600 900
country ii 200 300 800
From the above table, we can correctly say in respect of international trade that
Amount of labour days, cocoa(tons) Cloth(tons)
Country i 200 600 900
country ii 200 300 800
From the above table, we can correctly say in respect of international trade that
-
A.
Country I has absolute disadvantage in the production of both cocoa cloth -
B.
Country I has absolute advantage in the production of both cocoa and cloth -
C.
Country II has absolute advantage in the production of both cocoa and cloth -
D.
Country II has comparative advantage in the production of cocoa -
E.
Country II should leave the production of both cocoa and cloth to country I