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(Solved): Assume that it is found that country 1 has an absolute in wheat and country 2 has an absolute advant ...



Assume that it is found that country 1 has an absolute in wheat and country 2 has an absolute advantage in cheese a. this means that country 1 will specialise in wheat, produce more wheat and export wheat and reduce production of cheese and import cheese b. this means that country 2 will specialise in wreat, produce more wheat and export wheat and reduce production of cheese and import cheese c. this means that country 1 will specialise in cheese, produce more cheese and export cheese and reduce production of wheat and import wheat d. this means that country 1 will reduce production of wheat and import wheat and specialise in cheese, produce more cheese and export cheese e. there is no trade between the countries



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