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Countries Food Cloth

Home 5hrs 10hrs


Foreign 10hrs 5hrs

For Home countries 5hrs/10hrs =0.5 for producing food and 10hrs/5hrs =2 for producing cloths
For foreign countries 10hrs/5hrs=2 for producing food and 5hrs/10hrs=0.5 for producing cloths
There for from the above data opportunity cost of producing cloth in terms of food 0.5 for home
countries and 2 for foreign countries.
Then Comparative advantage in the production of food will be home countries.

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