Description

A numerical trade example. 'Country A and B each have 100 labor hours. Country A: 1 hour = 10 cars OR 5 computers. Country B: 1 hour = 2 cars OR 4 computers.' Step 1: A has absolute advantage in BOTH (10>2 cars, 5>4 computers). Step 2: Calculate opportunity costs. A: 1 car costs 0.5 computers. 1 com

Details