Question
Consider the UK and France in a Ricardian world. Each country produces two goods, Cars and Food. Each country has 1200 units of labor available.
Consider the UK and France in a Ricardian world. Each country produces two goods, Cars and Food. Each country has 1200 units of labor available. The table of unit labor requirements (the units of labor hours required to produce one unit of the good) for the production of each good in each country is below
Cars Food
UK 2 hours 5 hours
France 3 hours 6 hours
Which country has a comparative advantage in Car production? Which country has a comparative advantage in Food production?
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Crafting and Executing Strategy The Quest for Competitive Advantage
Authors: Arthur Thompson, Margaret Peteraf, John Gamble, A. J. Strickland III
19th edition
78029503, 978-0078029509
