Holland has a comparative advantage over Italy in producing cheese:Holland's cost of cheese production in terms of hours of labor used)is half its cost of producing wine,whereas Italy's cost of producing cheese is twice its cost of producing wine. Likewise,Italy has a comparative advantage in producing wine,which it can produce at half the cost at which it can produce cheese.❑ Holland has a comparative advantage over Italy in producing cheese: Holland’s cost of cheese production ( in terms of hours of labor used) is half its cost of producing wine, whereas Italy’s cost of producing cheese is twice its cost of producing wine. Likewise, Italy has a comparative advantage in producing wine, which it can produce at half the cost at which it can produce cheese