Suppose that one day of labor in each country produces the following quantities of fish and cheese: 1. Does France have a comparative advantage in the production of fish, cheese, or neither? Explain.   2. Does Japan have a comparative advantage in the production of fish, cheese, or neithter? Explain.   3. Suppose the countries decide to trade with each other—1 ton of cheese for 3 tons of fish. Would this trade be advantageous to both countries? Explain.     Country  Fish (tons) Cheese (tons) France 80 40 Japan 200 50

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
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Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...
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Suppose that one day of labor in each country produces the following quantities of fish and cheese:

1. Does France have a comparative advantage in the production of fish, cheese, or neither? Explain.
 
2. Does Japan have a comparative advantage in the production of fish, cheese, or neithter? Explain.
 
3. Suppose the countries decide to trade with each other—1 ton of cheese for 3 tons of fish. Would this trade be advantageous to both countries? Explain.
 
 
Country  Fish (tons) Cheese (tons)
France 80 40
Japan 200 50
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