Summary of product condition in countries i and ii

Amount of labour days, cocoa(tons) Cloth(tons)
Country i 200 600 900
country ii 200 300 800

From the above table, we can correctly say in respect of international trade that

• A.Country I has absolute disadvantage in the production of both cocoa cloth
• B.Country I has absolute advantage in the production of both cocoa and cloth
• C.Country II has absolute advantage in the production of both cocoa and cloth
• D.Country II has comparative advantage in the production of cocoa
• E.Country II should leave the production of both cocoa and cloth to country I