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The table below contains the unit labor requirements in Home and Foreign for each of ve goods as well as the relative productivity advantage of
The table below contains the unit labor requirements in Home and Foreign for each of ve goods as well as the relative productivity advantage of Home. Home Unit Labor Foreign Unit Labor Relative Home Productivity 600d Requirement {an} Requirement (a; ) Advantage { a; ram) Cell Phones 3 18 6 Jackets 2 ? 3.5 Laptops 10 30 3 MP3 Players 7' 8 1.14 Sneakers 3 4 0.5 It the relative Home wage (wiw') = 2 and transportation costs are 100% of production costs, it will be the case that O A. jackets, laptops, and MP3 players are nontraded goods. 0 B. cell phones and sneakers are nontraded. O 0. all ve of the goods are traded. O D. all ve of the goods are nontraded
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