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Absolute and Comparative Advantage
India can produce 100 units of rice and 300 hundred units of wheat using 1 unit of labour. However, Nepal uses 1 unit of labour to produce 20 units of rice and 20 units of wheat. Use this information to answer the following questions.
Define absolute advantage and say which country has absolute advantage in the production of rice and wheat? Justify your answer.
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Diversification can pay off
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