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Germany exports (plenty of) cars to South Korea. South Korea exports (plenty of) cars to Germany. You conclude that Question 2 options: German companies sell
Germany exports (plenty of) cars to South Korea. South Korea exports (plenty of) cars to Germany. You conclude that Question 2 options: German companies sell cars to Korean importers. Korean importers ship the same cars back to Germany. Korea has a comparative advantage in automotive production with respect to Germany. Germany has a comparative advantage in automotive production with respect to Korea. Ricardo's theory of international trade cannot make sense of this evidence
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