Question: Lets take a simple example of two countries and two goods. France produces 10 units of Wine in 1 hour and 5 units of cloth

Lets take a simple example of two countries and two goods. France produces 10 units of Wine in 1 hour and 5 units of cloth in 1 hour. England produces 4 units of wine in 1 hour and 1 unit of cloth in 1 hour. Based on Ricardos theory, who has absolute advantage and who has comparative advantage in Wine and Cloth respectively? Who will export /import which good to/from the other country? Explain your answer adequately.

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