Suppose that each worker in Foreign can produce three cars or two TVs. Assume that Foreign also

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Suppose that each worker in Foreign can produce three cars or two TVs. Assume that Foreign also has four workers.

a. Graph the production possibilities frontier for Foreign.

b. What is the no-trade relative price of cars in Foreign?

c. Using the information provided in Problem 3 regarding Home, in which good does Foreign have a comparative advantage, and why?

LO.1

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International Trade

ISBN: 978-1319061739

4th Edition

Authors: Robert C Feenstra ,Alan M Taylor

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Question Posted: Jul 19, 2024 01:09 AM

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Suppose that each worker in Foreign can produce three cars or two TVs. Assume that Foreign also

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International Trade

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