Question: 1. Let's take a simple example of two countries and two goods. Holland produces 25 units of Cheese in 1 hour and 15 units of

1. Let's take a simple example of two countries and two goods. Holland produces 25 units of Cheese in 1 hour and 15 units of Wine in 1 hour. Germany produces 10 units of Cheese in 1 hour and 12 units of Wine in 1 hour. 1. a) Who has absolute advantage in Wine and Cheese respectively? 2. b) Who has comparative advantage in Wine and Cheese respectively? 3. c) Who will export/import Wine and Cheese to/from which country? Explain your answer adequately

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