4. Suppose an hours labor produces 10 kg of rice and 5 meter of cloth in India,...

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4. Suppose an hour’s labor produces 10 kg of rice and 5 meter of cloth in India, and 5 kg and 2 meter in Thailand. Using opportunity costs, explain which country will export cloth and which will export paddy in trade.

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International Finance Theory And Policy

ISBN: 9781292019550

10th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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