Question
Suppose that the U.S. and Vietnam do not specialize according to comparative advantage and exchange but, instead, choose to be self sufficient. Further, they devote
Suppose that the U.S. and Vietnam do not specialize according to comparative advantage and exchange but, instead, choose to be self sufficient. Further, they devote 1/2 the acreage in each country to rice and wheat production and each country consume everything they produce domestically. Fill in the appropriate cells in the table on the next page.
Next, suppose that the U.S. and Vietnam fully specialize according to comparative advantage.Fill in the appropriate column in the table showing what happens to the collective production of rice and wheat after specialization.
How much rice will the US produce before specialization according to comparative advantage?
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