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Global Business Economics: Trade Theory Determine the range for the terms of trade when U.S. can produce 4 computers or 4 wines France can produce

Global Business Economics: Trade Theory

Determine the range for the terms of trade when U.S. can produce 4 computers or 4 wines France can produce 2 computers or 8 wines.

x wines < 1 computer < y wines, what is x and y.

Also do one more when the U.S. can produce 10 computers or 5 wines and France can produce 2 computers or 20 wines. For this example assume each country wants 2 computers. Work out what each country would produce in Autarky and what they would consume with trade.

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