There are two commodities and two countries.
One country has absolute advantage of one commodity and the second country has absolute advantage of the other commodity.
Technology is assumed to be constant.
Labour is the only factor of production
Value of a commodity is measured in terms of labour content.
There are no technological improvements.
A system of barter trade exists between the two countries.
Judiesiz answered the question on August 7, 2018 at 13:47
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