Brazil Mexico Soya per unit of labor 0.05 0.02 Corn per unit of labor 1.25 1.40 At what relative “price” of soya to corn would Mexico receive all of the potential gains from trade with Brazil? If production in both countries occur under conditions of perfect competition, and if the wage rate is $2 per hour in Brazil and $5 per hour in Mexico, using your knowledge of microeconomic theory, how would you go about calculating the price of corn in both countries?

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