The following table shows the total production that can be produced by two countries at 100 workers.

Countries	Oil production (barrels)	Corn production (bushels)
Saudi Arabia	500	350
United States	300	450

a) Which country has an absolute advantage in the production of oil and corn?

b) Calculate the opportunity cost of producing one barrel of oil and one bushel of corn in

each country.

c) According to the principle of comparative advantage, which country should specialize in

producing of oil and corn?

d) Identify which country should import corn and oil

e) When import greater is in a country that can increase level of competition between for

local and foreign country, discuss FIVE (5) tools how government can protect local

industry from foreign competition.