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Absolute advantage in wheat and foreign

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Reference no: EM131825753

1 True/False

For each of the following statements say whether it is true or false and explain why using a couple of sentences, graphs or equations.

(a) If we measure a country's "openness" to international trade as its Imports/GDP ratio, then large countries tend to be less open than small countries.

(b) In the Ricardian model, if Home has an absolute advantage in Wheat and Foreign has an absolute advantage in Cloth then Home has a comparative advantage in Wheat and Foreign has comparative advantage in Cloth.

Reference no: EM131825753

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