Comparative Advantage in International Trade: Production Possibilities Analysis for India, China, and Bangladesh

Assignment- 1 (15 Marks)

Assumptions for India	Assumptions for China
600 units of resources available	1. 600 units of resources available
10 units to produce a ton of Tea	2. 20 units to produce a ton of Tea
15 units to produce a ton of Cotton	3. 8 units to produce a ton of Cotton
Uses half of the total resources per product when there is no international trade	4.Uses half of the total resources per product when there is no international trade

Q1. Calculate production possibilities for both the countries when there is no international business.

Q2. Calculate production possibilities when there is international business available by using Absolute Cost Advantage Theory.

Q3. Draw a diagram and show production quantities for both the Q1 & Q2 situations.

Assignment- 2 (15 Marks)

Assumptions for India	Assumptions for Bangladesh
1000 units of resources available	1. 1000 units of resources available
20 units to produce a ton of Sugar	2. 30 units to produce a ton of Sugar
25 units to produce a ton of Rice	3. 30 units to produce a ton of Rice
Uses half of the total resources per product when there is no international trade	4.Uses half of the total resources per product when there is no international trade

Q1. Calculate production possibilities for both the countries when there is no international business.

Q2. Calculate production possibilities when there is international business available by using Comparative Cost Advantage theory and show with a diagram.

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Comparative Advantage in International Trade: Production Possibilities Analysis for India, China, and Bangladesh

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