[Answer] If the two countries have the same amount of resources and the same technological knowledge which country has an absolute advantage in the production of cotton?

Answer: Indonesia
If the two countries have the same amount of resources and the same technological knowledge which country has an absolute advantage in the production of cotton?

The Heckscher–Ohlin model (H–O model) is a general equilibrium mathematical model of international trade developed by Eli Heckscher and Bertil Ohlin at the Stockholm School of Economics.It builds on David Ricardo’s theory of comparative advantage by predicting patterns of commerce and production based on the factor endowments of a trading region. The model essentially says that countries …

Globalization or globalisation (Commonwealth English; see spelling differences) is the process of interaction and integration among people companies and governments worldwide. Globalization has accelerated since the 18th century due to advances in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of …

Comparative advantage – Wikipedia

Absolute advantage – Wikipedia

Export-oriented industrialization – Wikipedia

Comparative advantage – Wikipedia

The Great Divergence or European miracle is the socioeconomic shift in which the Western world (i.e. Western Europe and the parts of the New World where its people became the dominant populations) overcame pre-modern growth constraints and emerged during the 19th century as the most powerful and wealthy world civilization eclipsing Mughal India Qing China the Islamic world the kingdoms and …

Production -Possibility Frontier delineates the maximum amount /quantities of outputs (goods/services) an economy can achieve given fixed resources (factors of production ) and fixed technological progress.Points that lie either on or below the production possibilities frontier/curve are possible/attainable: the quantities can be produced with currently available resources and technology.

Therefore Portugal has an absolute advantage in the production of wine. If the two countries specialize in producing the good for which they have the …

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