A country imports high tech products and exports agricultural products.

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A country imports high tech products and exports agricultural products. 

Suppose you had any control over future technological developments (You have none, but anyway), would 

you prefer scenario (a), (b) or (c) and why? (Where necessary, illustrate with a graph using the Ricardo 

analysis of comparative advantage.) 

a. There is a technological revolution abroad in the high tech industry. In other words, productivity 

increases significantly in the technology sector.

b. There is a productivity increase abroad in the agricultural sector.

c. No technological revolution at all abroad.

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