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Assume that the production of one unit of cell phones

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June 7th, 2024

Assume that the production of one unit of cell phones in the US requires 20 units of resources, while theproduction of one unit of textiles uses 10 units of resources. Also assume the world price is 1 unit of cellphones = 4 units of textiles Please explain how the US benefits from specialization in cell phoneproduction, and exchanging excess phones for textiles.

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