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20. The fixed labour requirements per unit of wine and clothing production before trade for
England and Portugal are given below :
Wine Clothing
England 6 10
Portugal 3 5
If trade opens up between England and Portugal, what will be the pattern of trade
according to comparative advantage?
(a) England exports clothing and Portugal exports wine
(b) England exports wine and Portugal exports clothing
(c) Neither country will trade in any good
(d) Cannot say
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