International Business

1: The following table shows cost per unit of production of two countries X and Y with no transportation cost and. free trial.

 

A (Rs.)

B(Rs.)

Sugar

350

650

Cloth

700

800

Which one of the following will take place ?

 

A.

No trade will take place

B.

X will export sugar and import cloth

C.

X will export cloth and import wheat

D.

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Answer : B

Explanation :

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Option: A

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