I am a complete beginner here trying to learn through Khan Academy. I found some data that correspond to Ricardo's explanation of comparative advantage. According to Wikipedia "England has a comparative advantage in producing cloth due to lower opportunity cost." Yet, when I work through it I get the opposite, where am I going wrong?
Cloth Wine
England 100 120
Portugal 90 80
England
100 = 120
100/100 = 120/100
1 = 1.2
For 1 cloth there is an OC to England of 1.2 wine. For 1 wine there is an OC to England of 0.8333 cloth.
Portugal
90 = 80
90/90 = 80/90
1 = 0.8888
For 1 cloth there is an OC to Portugal of 0.8888 wine. For 1 wine there is an OC to Portugal of 1.125 cloth
England should produce wine because its OC is lower (0.8333 < 1.125).
Portugal should produce cloth because its OC is lower (0.8888 < 1.2).