Using the one factor Ricardian model concept and the unit labor requirements information in the table below, determine d) In what commodity production, foreign has a comparative advantage. Explain. e) Which country has an absolute advantage. Explain f) If PC is the price of Cheese and PW is the price of Wine, and PC = PW, then What commodities will domestic specialize in?
Using the one factor Ricardian model concept and the unit labor requirements information in the table below, determine
d) In what commodity production, foreign has a
Explain.
e) Which country has an absolute advantage. Explain
f) If PC is the price of Cheese and PW is the price of Wine, and PC = PW, then
What commodities will domestic specialize in?
g) If PC is the price of Cheese and PW is the price of Wine, and PC = PW, then
what commodities will foreign specialize in?
h) Using the comparative advantage information above, determine the commodity that
exported and imported by domestic and foreign respectively?
i) If PC = PW or PC/PW = 1, what is the
domestic and foreign if each country specializes in
which production has a comparative advantage? Explain.
j) If if PC = PW = $9, what is the wage relative to trade.
Which country's workforce benefits from the trade?
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