12 10 8 6- A 1 2 0 20 40 Autos 60 80 100 Country A should specialize in ship building and Country B should specialize in automotive manufacturing. There are no advantages to trade because the lines are downward sloping. Country A should specialize in automotive manufacturing and Country B should specialize in ship building. There are no advantages to trade because Country A can produce more of both goods.
12 10 8 6- A 1 2 0 20 40 Autos 60 80 100 Country A should specialize in ship building and Country B should specialize in automotive manufacturing. There are no advantages to trade because the lines are downward sloping. Country A should specialize in automotive manufacturing and Country B should specialize in ship building. There are no advantages to trade because Country A can produce more of both goods.
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 3SCQ: In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine....
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