2. Suppose in the year 2013, Australia had a population of 45 million and its capital stock...

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2. Suppose in the year 2013, Australia had a population of 45 million and its capital stock is US $90,000 million, and the corresponding figure for Malaysia is 30 million and US $75,000 million. Answer the following, on the basis of this information

a. Which country is capital abundant and why?

b. If production of cloth is labor intensive relative to the production of computers, which country would export cloth, if engaged in trade?

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International Finance Theory And Policy

ISBN: 9781292019550

10th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: Oct 02, 2024 07:03 AM

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2. Suppose in the year 2013, Australia had a population of 45 million and its capital stock...

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International Finance Theory And Policy

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