For case 2 in Exercise 1, which country would prefer an international terms of trade of 1.2

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For case 2 in Exercise 1, which country would prefer an international terms of trade of 1.2 rather than an international price of 1.66? Explain.

Data from in exercise 1

For each of the following cases below determine the following:

(a) the pretrade relative prices;

(b) the direction of comparative advantage; and

(c) the limits to the relative wage rate.

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International Economics

ISBN: 9780321783868

9th Edition

Authors: Steven Husted , Michael Melvin

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Question Posted: Apr 27, 2024 03:00 AM

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For case 2 in Exercise 1, which country would prefer an international terms of trade of 1.2

Question:

Case 2 A B S 10 6 T 4 6

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International Economics

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