Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then a) Brazil will completely specialize in computers once trade begins with Chile. b) Chile will produce more computers after trade begins with Brazil. c) Chile will produce more timber after trade begins with Brazil. d) Brazil will produce more timber after trade begins with Chile.

Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then a) Brazil will completely specialize in computers once trade begins with Chile. b) Chile will produce more computers after trade begins with Brazil. c) Chile will produce more timber after trade begins with Brazil. d) Brazil will produce more timber after trade begins with Chile.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter21: International Trade And Finance

Section: Chapter Questions

Problem 2SQ

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