Consider two countries: Nigeria and Taiwan, and two goods: oil
and semiconductors. In Nigeria, a barrel of oil costs 5 labor hours
to produce, while a pound of semiconductors costs 20 labor hours.
In Taiwan, a barrel of oil costs 7.5 labor hours to produce, while
a pound of semiconductors costs 15 labor hours.
(a) (7 points) Does any country have an absolute advantage? Why
or why not?
(b) (8 points) Which country has a comparative advantage in each
school?...