Assume that the limits to mutually beneficial trade between the U.S. and India are 1Machine = 3Cloth and 1Machine = 5Cloth, respectively. The closer the ratio is to the U.S. ratio of 1Machine = 3Cloth, the better it is for India.

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The closer the ratio is to the U.S. ratio of 1Machine = 3Cloth, the better it is for India because India can get more cloth for each machine it exports.

Assume That the Limits to Mutually Beneficial Trade Between the U.S