cost of producing product X	cost of producing product Z
Country A $10	$8
Country B $20	$5

Exercise 2 (60 Marks) (i) Without a trade what is the cost of producing product X for country A and which one for B? (15 Marks) (ii) Which country has a comparative advantage for product X and product Z and why? (15 Marks) (iii) Which country has an absolute advantage for both products and why? (15 Marks) (iv) If the two countries trade with each other which product will prefer to export and why? (15 Marks)