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Question Completion Status: QUESTION 21 Table 1 Suppose that you are the executive manager of a multinational company that is located in the U.S.
Question Completion Status: QUESTION 21 Table 1 Suppose that you are the executive manager of a multinational company that is located in the U.S. Your company is interested in expanding its international activities by producing two new products: calculators and cigars. It considers two countries: Italy and/or Mexico. Both Italy and Mexico have each 2 units of labor available to produce the two goods, calculators and cigars. Using one unit of labor for the production of each product, Mexico and Italy have the following production/consumption: Output/Man-Day Mexico Italy Calculators 10 2.5 Cigars 7.5 5 Refer to the information in Table 1: Neither country has comparative advantage. Mexico has comparative advantage in Calculators. Mexico has absolute advantage only in Cigars Italy has comparative advantage in Calculators. Italy has comparative advantage in both products. QUESTION 22 Click Save and Submit to save and submit. Click Save All Answers to save all answers.
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