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1.Set up a Ricardo-type comparative advantage numerical example with two countries and two goods. Distinguish “absolute advantage” from “comparative advantage” in the context of your example. Then select an international terms-or-trade ratio and explain in some detail how trade between the two countries benefits each of them in comparison with autarky. When would either of your countries NOT benefit from engaging in trade? Explain.
2. read the PA1 assignment and understand what the assignment is asking you to complete. Once you have an understanding of the PA1 assignment, please continue to the paragraph below to complete DQ1.
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