In Portugal, the opportunity cost of a bale of wool is 3 bottles of wine. In England, the opportunity cost of 1 bottle of wine is 3 bales of wool. Based on this information,

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Portugal has a lower opportunity cost for producing wine (3 bottles of wine foregone for 1 bale of wool) compared to England's opportunity cost (3 bales of wool foregone for 1 bottle of wine). This means that Portugal has a comparative advantage in producing wine, as it gives up less wool to produce the same amount of wine compared to England. Therefore, it would be beneficial for both countries to trade, with Portugal exporting wine and England exporting wool.

In Portugal, the Opportunity Cost of a Bale of Wool