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Fiji and Greece produce and consume luxury watch and television (TV). The luxury watch industry uses capital intensively while TV uses labour intensively in the
Fiji and Greece produce and consume luxury watch and television (TV). The luxury watch industry uses capital intensively while TV uses labour intensively in the production. In Fiji, there are more labour per capital compared to Greece. Graphically demonstrate the mutually beneficial trade between Fiji and Greece with some differences in taste. Briefly explain the impact of international trade on distribution of income in both countries. (18 marks)
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