Mexican and Chinese workers can each produce 4 boats a year. A Mexican worker can produce 20 tons of flour a year, whereas a Chinese worker can produce 25 tons of flour a year. To keep things simple, assume that each country has 100 million workers.

1. For this situation, construct a table reproducing the production opportunities of the Mexican and Chinese workers.
2. Graph the production possibilities frontier of the Mexican and Chinese economies.
3. For Mexico, what is the opportunity cost of a boat? Of flour? Put this information in a table.
4. Which country has an absolute advantage in producing boats? In producing flour?
5. Which country has a comparative advantage in producing boats? In producing flour?
6. In which good shall each country specialize in? Why?