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international trade b) Table 1 shows the output per worker per day of United States and Japan under four different hypothetical situations. Table 1: Output

international trade

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b) Table 1 shows the output per worker per day of United States and Japan under four different hypothetical situations. Table 1: Output per hour per labour Case A Case B Case C Case D U.S. Japan U.S. Japan U.S. Japan U.S. Japan Tons of Steel 20 5 20 5 20 5 20 10 Televisions 5 10 15 10 10 10 10 5 i) In each case identify the good in which the United States and Japan have an absolute advantage. [10] ii) With respect to Table 1, indicate in each case the good in which each country has a comparative advantage. [10]

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