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Suppose That Spain Has a Comparative Advantage in Hats and Portugal

question 21

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Suppose that Spain has a comparative advantage in hats and Portugal has a comparative advantage in doormats.Under a system of free trade,each country specialises and then trades with the other.If the price starts at 4 hats per doormat,and then increases to 5 hats per doormat,then:


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Abandoned Line

A term that could refer to a discontinued approach or argument, or a physical railway or communication line no longer in use.

Claim

An assertion or demand for something as due or belonging to one, often without proof.

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