Table 2.12 
Table 2.12 shows the number of labour hours required to produce a cell phone and a cubic metre of lumber in Estonia and Finland.
-Refer to Table 2.12.Does either Estonia or Finland have an absolute advantage and if so, in what product?
Definitions:
Interest Tax Shield
The savings in income tax that a company achieves through deducting its interest expense from its taxable income.
WACC
Weighted Average Cost of Capital, a calculation of a firm's cost of capital where each category of capital is proportionately weighted.
Capital Structure
The particular combination of debt and equity that a company uses to finance its overall operations and growth.
Financial Risks
The possibility of losing money on an investment or business operation due to market fluctuations, default, or other financial uncertainties.
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