Assume that by devoting all of its resources to the production of steel, Japan can produce 50,000 tons of steel, and that by devoting all of its resources to bicycles , Japan can produce 800,000 bicycles . Similarly, by devoting all of its resources to the production of either steel or bicycles , France can produce either 30,000 tons of steel or 200,000 bicycles . In this example __________ (FRANCE OR JAPAN) has an absolute advantage in the production of __________ (STEEL, BOTH STEEL AND BICYCLES, OR BICYCLES) and a comparative advantage in the production of bicycles .