7. Consider two countries Vietnam and Thailand and the two goods they produce are wheat (in bushels) and rice (in kilograms). Vietnam in one month can produce either 16 bushels of wheat or 8 kgs of rice whereas, Thailand can produce 20 bushels of wheat or 6 kgs of rice. (a) Which country has the absolute advantage in producing rice? (b) Calculate which country has the comparative advantage of producing wheat and rice while showing the complete working. (c) How will trade occur between Vietnam and Thailand?

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