Scotland Sweaters England And Scotland...?

England and Scotland...? - scotland sweaters

England and Scotland, both produce scones and sweaters. Suppose that a British worker 50 scones per hour or 1 hour can make sweaters. Let us assume that the worker can produce 40 rolls Scotch per hour or 2 shirts per hour.

a.) Which country has absolute advantage in producing any good? Which country has a comparative advantage?

b) deciding when England and Scotland, trade, trade in commodities in Scotland and England? Explaining.

c) If an employee can only now 1 Scottish sweaters, Scotland, full benefits of trade? England still win trading? Explaining.

1 comments:

Jock said...

The point is it? The answer is not to win.

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