Suppose that Portugal requires 4 days of labor to produce 1 unit of wine and 6 days

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Suppose that Portugal requires 4 days of labor to produce 1 unit of wine and 6 days of labor to produce 1 unit of clothing, while England requires 8 days of labor to produce 1 unit of wine and 12 days of labor to produce 1 unit of clothing. Which country has absolute advantages and why? What is the situation with respect to comparative advantages?
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International Economics

ISBN: 9780078021671

8th Edition

Authors: Dennis Appleyard, Alfred Field

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