Chapter17: International Trade
Section: Chapter Questions
Problem 1.2P
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Question
Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523 units of Food or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5000.
(d) Which country has the
(e) Which good(s) should each country specialize in?
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