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Suppose That the Productivity Per Worker in the Crude Oil

question 166

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Suppose that the productivity per worker in the crude oil and natural gas industries of Westland and Eastland are as follows:
Suppose that the productivity per worker in the crude oil and natural gas industries of Westland and Eastland are as follows:    a)Which country has the absolute advantage in producing crude oil? b)Which country has the absolute advantage in producing natural gas? c)Which country has the comparative advantage in producing crude oil? d)Which country has the comparative advantage in producing natural gas? e)According to the theory of comparative advantage,will there be trade? If yes,what is the direction of trade? a)Which country has the absolute advantage in producing crude oil?
b)Which country has the absolute advantage in producing natural gas?
c)Which country has the comparative advantage in producing crude oil?
d)Which country has the comparative advantage in producing natural gas?
e)According to the theory of comparative advantage,will there be trade? If yes,what is the direction of trade?


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