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Strategies for Global Value Added: Gains Comparative advantage - page 21 / 30

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21

Trade and the product mix

Example:Which country exports which good?

Wages:WA = 18             WB = 6

Wage ratio: WA / WB = 3.

Productivity ratio greater than wage ratio:

Country A exports Good 2 and Good 3 to Country B.

Country A imports Good 1 from Country B.

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