International Trade.

I have trouble in DFS model.

Use a diagram with schedules A and B as the ones in DFS (Dornbusch, Fischer, and Samuelson, 1977). Suppose the world consists of the U.S. and China, and that Chinese productivity in all products uniformly rises. How does Chinese uniform growth affect the US welfare? To answer this question, show how the equilibriumas the intersection of schedules A and Bchanges, and how that alters the US terms of trade.