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Suppose that Poland and Wales both produce boots and liquor. Poland's opportunity cost of producing a case of liquor is 5 pairs of boots while
Suppose that Poland and Wales both produce boots and liquor. Poland's opportunity cost of producing a case of liquor is 5 pairs of boots while Wales's opportunity cost of producing a case of liquor is 11 pairs of boots. By comparing the opportunity cost of producing liquor in the two countries, you can tell that has a comparative advantage in the production of liquor and has a comparative advantage in the production of boots. Suppose that Poland and Wales consider trading liquor and boots
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