Question: We assume that labor is the only input in producing goods and services when studying the theory of comparative advantage. Given this, for bilateral

We assume that labor is the only input in producing goods and

We assume that labor is the only input in producing goods and services when studying the theory of comparative advantage. Given this, for bilateral trade between two countries with different productivity levels to occur, according to comparative advantage theory, there should be a wage differential (e.g. wages in Finland (a relatively more productive country) should be greater than the wages in Vietnam). True False

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