This table shows how much wine and cheese can be produced in Spain and Portugal with one unit of equivalent resources.Initially there is no trade.Once trade opens up,transportation costs are assumed to be zero.
TABLE 32-5
-Refer to Table 32-5.The comparative advantage in wine is held by

Question

This table shows how much wine and cheese can be produced in Spain and Portugal with one unit of equivalent resources.Initially there is no trade.Once trade opens up,transportation costs are assumed to be zero.
  TABLE 32-5
-Refer to Table 32-5.The comparative advantage in wine is held by

Quizplus · Accepted Answer

Portugal has a lower opportunity cost of producing wine (1/3 cheese) compared to Spain (1/2 cheese). Therefore, Portugal has a comparative advantage in producing wine.

This Table Shows How Much Wine and Cheese Can Be