Question
Given the following illustration of comparative advantage; Production KENYA UGANDA Wheat, Kgs per man/ hour 7 1 Cloth, meters per man/ hour 5 2 Compute
Given the following illustration of comparative advantage;
| Production | KENYA | UGANDA |
| Wheat, Kgs per man/ hour | 7 | 1 |
| Cloth, meters per man/ hour | 5 | 2 |
Compute the gains in man hours and physical units of wheat for each country when International Rate of Exchange are as follows;
- 7W for 10C
- 6W for 8C
- 7W for 14C
- 10W for 5C
- 4W for 6C
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz
11th Edition
134519574, 9780134521046 , 978-0134519579
