Suppose that two countries have the following production possibilities: Smartphones Refrigerators Country A 150 50 Country B 200 100 Country A has the absolute advantage in production of Country has the comparative advantage in producing refrigerators Country should be specializing in production of smartphones. If the price in international trade is 1 refrigerator = 4 smartphones, then which %3D country will benefit from the international trade? Answer: Assume that country A purchases the new technology of smartphones production. As a result of this change, other things being the same, the price for refrigerators in the international trade will become
Suppose that two countries have the following production possibilities: Smartphones Refrigerators Country A 150 50 Country B 200 100 Country A has the absolute advantage in production of Country has the comparative advantage in producing refrigerators Country should be specializing in production of smartphones. If the price in international trade is 1 refrigerator = 4 smartphones, then which %3D country will benefit from the international trade? Answer: Assume that country A purchases the new technology of smartphones production. As a result of this change, other things being the same, the price for refrigerators in the international trade will become
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 4SCQ: In Germany it takes three workers to make one television and four workers to make one video camera....
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Pls explain each answer by calculations
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