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Let us assume wine and steel can be produced both by France and Italy. France requires 20 hours of labor to produce one bottle of

Let us assume wine and steel can be produced both by France and Italy. France requires 20 hours of labor to produce one bottle of wine and 100 hours of labor to produce one kg. of steel. Italy needs 16 hours of labor to produce one bottle of wine and 110 hours of labor to produce steel. Then

a) Which country must specialize in wine and which country in steel production according to Ricardo?

b) What type of advantage we have in that case?

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