In respect of the production possibility curve under increasing opportunity costs given above, consider the following statements:1. The production possibility curve is not indentical with price curve as in the case of constant costs.2. There would be complete specialisation of a co untry in a single com m o dity in a tw ocommodities and two countries model. Which of the statements is/are correct?

International economics is concerned with the effects upon economic activity from international differences in productive resources and consumer preferences and the international institutions that affect them. Basicaly, International economics deals with issues arising from economic interaction among sovereign nations