Seamus "Skip" Cavanaugh Often Travels Between Switzerland and Ireland

Seamus "Skip" Cavanaugh often travels between Switzerland and Ireland. During his travels he has noticed that the two countries rarely trade with each other. He also noticed that the opportunity cost of producing a watch in Switzerland is 1/5 of a sweater and that the opportunity cost of producing a watch in Ireland is 5 sweaters. At the current time Switzerland's production is 30 sweaters and 200 watches, while Ireland's production is 200 sweaters and 30 watches.
(a) Which country has a comparative advantage in the production of which good? Explain.
(b) Describe how Skip can make a profit.
(c) Illustrate your answer to part (b) with a numerical example.

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(a) Ireland has a comparative advantage ...

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