One of the theories that covers the global trade, developed by D Ricardo is a comparative advantage theory. Provide a small example of it, by giving a 2 country scenario, trading say tennis balls and tennis rackets. Give a numeric example, so that we can see which country can do one at the lower opportunity cost. Finally, provide a statement who exports what and who imports what.

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In a twocountry scenario involving Country A and Country B trading tennis balls and tennis rackets l... View the full answer