The table below gives the marginal product of labour in production of the two commodities in the two countries. There are no other resources used for production
| Country | Marginal Product in Cloth | Marginal Product in Rice |
|---|---|---|
| Bangladesh | 4 | 2 |
| India | 5 | 5 |
Then for mutually beneficial trade between the two countries Bangladesh would be willing to :
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Theories of international trade has come up 151 times in 6 exams since 2006.
This question is on Absolute and comparative advantage, part of Theories of international trade in International Economics.
Why countries trade: producing more cheaply in absolute terms, or at lower opportunity cost.
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Question from the JNU SIS 2020 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.