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Portugal can produce wine and cloth with less labor than England. But, given all factors of production, England can produce cloth relatively better than Portugal.
Portugal can produce wine and cloth with less labor than England. But, given all factors of production, England can produce cloth relatively better than Portugal. According to Ricardo's theory of comparative advantage, it make sense for England to Multiple choice question. import both cloth and wine from Portugal. export cloth and import wine from Portugal. export both cloth and wine to Portugal. import cloth from Portugal, but export wine
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