Using the data in the table...

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Question

1. Using the data in the table (in the attached document), answer the following question
a. For which good does Canada have a comparative advantage?
b. For which good does Italy have a comparative advantage?
c. What might be a set of favorable terms of trade for the two countries?
d. Prove that both countries would be better off in the specialization-trade case than in the no-specialization-no-trade case.

 

Solution ID:351078 | This paper was updated on 26-Nov-2015

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