Consider 2 countries (the United States and the France) that use input such as labor to produce 2 different goods: cloth and wine. In France, 1 hour of labor can produce either 20 wines or 10 cloths. In the United States, 1 hour of labor can produce either 30 wines or 20 cloths. You are required to determine how should each country make optimize the use of labor that is by producing the good in which they have a comparative advantage.
Consider 2 countries (the United States and the France) that use input such as labor to produce 2 different goods: cloth and wine. In France, 1 hour of labor can produce either 20 wines or 10 cloths. In the United States, 1 hour of labor can produce either 30 wines or 20 cloths. You are required to determine how should each country make optimize the use of labor that is by producing the good in which they have a comparative advantage.
Chapter21: International Trade And Finance
Section: Chapter Questions
Problem 2SQ
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Consider 2 countries (the United States and the France) that use input such as labor to
produce 2 different goods: cloth and wine. In France, 1 hour of labor can produce either
20 wines or 10 cloths. In the United States, 1 hour of labor can produce either 30 wines or
20 cloths. You are required to determine how should each country make optimize the use
of labor that is by producing the good in which they have a
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