Production Data SCENARIO: You work for a consulting firm that advises countries on trade Country of Joem - Production Possibilities policy. The countries of Joem and Annia both produce corn Corn (tons) O and sugar. You have been asked to analyze the opportunity Sugar (tons) costs and comparative advantages to recommend an efficient OO O trading relationship. Consider the production data provided. Prepare a brief report that: Country of Annia - Production Possibilities Corn (tons) 1. Calculate and compare the opportunity costs of producing 1 unit O of corn and 1 unit of sugar in each country. Which country has Sugar (tons) O the lower opportunity cost for each good? Determine which good each country has a comparative Preferred Bundle without trade advantage in producing sugar and which one has a comparative Joem Annia advantage in producing corn. Explain your analysis. m Corn (tons) Recommend a trading relationship that allows the countries to specialize based on comparative advantage. How would trade Sugar (tons) improve economic efficiency? Think about your own interests, skills, and opportunities. In what areas do you potentially have a comparative advantage over your peers or co-workers? Are there goods or services you could provide to others more efficiently? How could you maximize your advantages to achieve positive gains from trade in your daily exchanges and relationships? Questions & Reflection Graphical Analysis Gains to Trade PAGE 10 Opportunity Costs, Comp Adv. & PPF