Question: 8. Answer the following: a) In which product(s) do the two countries have an absolute advantage? b) Could you suggest a specialization scheme based on

8. Answer the following: a) In which product(s) do the two countries have an absolute advantage? b) Could you suggest a specialization scheme based on absolute advantage? Why? c) If you answer negatively to b), could there still be any gains from specialization? Why?

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