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Suppose that: China has a comparative advantage in textiles and an absolute advantage in radios; Japan has a comparative advantage in radios and an absolute
Suppose that: China has a comparative advantage in textiles and an absolute advantage in radios; Japan has a comparative advantage in radios and an absolute advantage in textiles.
According to this scenario:
a) Japan should export both radios and textiles.
b) China should export textiles and import radios.
c) China should import both radios and textiles.
d) Japan should export textiles and import radios.
which one and why?
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