Amount of labour days Cocoa (tons) Cloth (m..

Question 1 Report

Summary of production conditions in countries l and ll.
From the table, we can correctly say in respect of international trade that

country I has absolute disadvantage in the production of both cocoa and cloth

country I has absolute advantage in the prodcttion of both cocoa and cloth

country ll has absolute advantage in the production of both cocoa and cloth

country ll has a comparative advantage in the production of cocoa

country ll should leave the production of both cocoa and cloth to country l.

Amount of labour days Cocoa (tons) Cloth (metres) Country I 200 600 900 Country II 200 300 800 Summary of production conditions in countries l and ll. From ...