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QUESTION 23 Table 1 Suppose that you are the executive manager of a multinational company that is located in the U.S. Your company is

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QUESTION 23 Table 1 Suppose that you are the executive manager of a multinational company that is located in the U.S. Your company is interested in expanding its international activities by producing two new products: calculators and cigars. It considers two countries: Italy and/or Mexico. Both Italy and Mexico have each 2 units of labor available to produce the two goods, calculators and cigars. Using one unit of labor for the production of each product, Mexico and Italy have the following production/consumption: Output/Man-Day Mexico Italy Calculators Cigars 10 2.5 7.5 5 Refer to the information in Table 1. The international terms of trade that Mexico will gain most from trade and Italy will be indifferent, are: 1 Calculator for 2 Cigars. 1 Cigar for 0.75 Calculators. O 1 Calculator for 0.75 Cigars O 1 Calculator for 1 Cigar." O1 Cigar for 1.33 Calculators

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