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Imagine two countries: Home and Foreign that produce cheese (Qc) and wine (Qw). In Home: labor supply = 2000 hrs, aLC=4 hr/Qc and aLW=2 hrs/Qw.
Imagine two countries: Home and Foreign that produce cheese (Qc) and wine (Qw). In Home: labor supply = 2000 hrs, aLC=4 hr/Qc and aLW=2 hrs/Qw. In Foreign: labor supply = 1000 hrs, aLC=1 hr/Qc and aLW=1 hr/Qw. Who has an comparative advantage in each good? Group
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