With a cost of $12.75 million, an American factory can produce 8.2 million pants. Therefore, every pair of American pants costs 12.75/8.2 = $1.55
Meanwhile, it cost $2.3 million to produce 4.3 million pants in a Chinese factory. Therefore, every pair of Chinese pants costs 2.3/4.3 = $0.53
Since 1.55/0.53 = 2.92, with the cost of one pair of American pants, almost 3 pairs of Chinese pants can be made.
