Summary of production conditions in countries l and ll.
From the table, we can correctly say in respect of international trade that
- country I has absolute disadvantage in the production of both cocoa and cloth
-
country I has absolute advantage in the prodcttion of both cocoa and cloth
- country ll has absolute advantage in the production of both cocoa and cloth
- country ll has a comparative advantage in the production of cocoa
- country ll should leave the production of both cocoa and cloth to country l.