Question
Two countries begin to trade - Cambodia and Vietnam in the goods of rice of soybeans *Cambodia takes 30 hours to produce a ton of
Two countries begin to trade - Cambodia and Vietnam in the goods of rice of soybeans
*Cambodia takes 30 hours to produce a ton of soybeans and 10 hours to produce a ton of rice. *Vietnam produces take 40 hours to produce a ton of Soybeans and 15 hours to produce a ton of rice.
(a) Who has an absolute advantage in Soybeans?
(b) Who has a comparative advantage in Rice?
(c) The opportunity cost for one ton of soybeans is how many tons of rice in Vietnam?
(d) Would 0.35 tons of soybeans be a plausible terms of trade for rice after they open up to trade?
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