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onsider two countries: Japan and Malaysia. Each country produces food and clothing. You are told that if Japan uses all its resources to produce Clothing,
onsider two countries: Japan and Malaysia. Each country produces food and clothing. You are told that if Japan uses all its resources to produce Clothing, it produces a total of 1200 units of Clothing. If it uses all its resources to produce Food, it can produce a total 600 units of Food. For Japan, the opportunity cost of producing one unit of clothing is 0.5 units of Food, and the opportunity cost of producing one unit of food is 2 units of Clothing. On the other hand, if Malaysia uses all its resources to produce Clothing, it produces a total of 400 units of Clothing. If it uses all its resources to produce Food, it can produce a total 400 units of Food. The opportunity cost of producing one unit of Food for Malaysia is 1 unit of Clothing. The opportunity cost of producing one unit of Clothing for Malaysia is 1 unit of Food. If you were asked to comment on each country's comparative advantage, what would you say? Malaysia has a comparative advantage in producing Food, while Japan has a comparative advantage in producing Clothing Malaysia has a comparative advantage in producing Clothing, while Japan has a comparative
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