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Suppose in an hour, 10kg of rice and 5 meters of cloth are produced in India whereas in Thailand it is 5kg of rice and
Suppose in an hour, 10kg of rice and 5 meters of cloth are produced in India whereas in Thailand it is 5kg of rice and 2 meters of cloth. If the countries are offered the opportunity to trade with one another at a relative price of rice to cloth equal to 1/2, then trade will benefit?
Select one:
Thailand only.
Neither India nor Thailand.
Both India and Thailand.
India only.
Impossible to determine from the information.
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