ook at the table below and state if either country has an absolute or comparative advantage in either of the two products.

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Goods Produced by One Unit of Resources




Country A



Country B




(i) From the table above, do you believe that these two countries should trade with each other? If so, what good should Country A specialize in? What good should Country B specialize in?  

(ii) If there is a basis for trade, rewrite the values in the table showing how much overall production of both goods will increase (thereby showing the benefits of trade)


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