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Find a trade (amount of wine exchanged for amount cheese) that makes both countries better off in both goods relative to when no trade was
Find a trade (amount of wine exchanged for amount cheese) that makes both countries better off in both goods relative to when no trade was allowed. What is the consumption point in each country with free trade? Show this graphically. Question 4. (3 points) The following is a ranking of tractor export values by country as of 2022. 1. Mexico: US$12.1 billion (16.9% of total exported tractors) 2. Germany: US$11.3 billion (15.8% of total exported tractors) 3. Netherlands: $6.9 billion (9.6%) 4. United States: $6.3 billion (8.8%) Mexico leads the world in tractor exports and beats the U.S. by nearly $6 billion. The U.S. also imports far more tractors from Mexico than Mexico does from the U.S. Do you think this is primarily due to Mexico having an absolute advantage in tractor production or a comparative advantage? Explain
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