Identify which goods both countries specialise in producing

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Country X produces 800 units of bananas and 400 units of steel when it divides its economic resources equally between these two types of products. Country Y produces 400 units of bananas and 400 units of steel under the same conditions. identify which goods both countries should specialise in producing and the relevant terms of trade, assuming constant cost production.

Reference no: EM131316630

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