1. Assume that the production of one unit of cell phones in the US requires 20 units of resources, while the production of one unit
1. Assume that the production of one unit of cell phones in the US requires 20 units of resources, while the production of one unit of textiles uses 10 units of resources. Also assume the world price is 1 unit of cell phones = 4 units of textiles. Please explain how the US benefits from specialization in cell phone production, and exchanging excess phones for textiles. (10 points)
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