Machines Wine France 3 1 Germany 1 1 The Accompanying Table Shows The Output Eit

machines/wine

france: 3/1

germany: 1/1

The accompanying table shows the output (either machines or wine) that each unit of input in France and Germany can produce. We see that

France has an absolute advantage over Germany in producing either output.

Germany has an absolute disadvantage in producing wine.

Germany has no absolute advantage over France in producing either output.

France will see no economic basis for trading with Germany.

 
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