Explain why does the united states have

Reference no: EM1340258

International Trade: The Solution to Comparative Advantage

Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily.

In Fredonia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily.

Why does the United States have an absolute advantage in both goods? Which country enjoys a comparative advantage in food? Why?

Reference no: EM1340258

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