Question
Assume there are two worker in mexico and three work in the United States Mexico. United state Bottles of mango. 7. 5 Pound of rice
Assume there are two worker in mexico and three work in the United States
Mexico. United state
Bottles of mango. 7. 5
Pound of rice produced 5 10
per hour
A. Determine the pre trade relative price of mango juice in mexico and the united states.
B. Give your answer in part (a) which country has a comparative advantage in the production of rice
C. what is the lowest international relative price of mango
juice mexico is willing to accept in order to engage in trade with the united states? Briefly explain why?
D.determine the terms of trade for both countries
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