(Table: Home and Foreign Prices for Manufacturing and Agriculture) Consider

Multiple Choice

(Table: Home and Foreign Prices for Manufacturing and Agriculture) Consider the information provided about the price of agriculture and manufacturing goods in two countries (Home and Foreign) . If the two countries open their markets for trade, then:

A) Home has the comparative advantage in agriculture.
B) Home has the comparative advantage in manufacturing.
C) Foreign has absolute advantage in both goods.
D) Foreign has a comparative advantage in manufacturing.