benefits of trade

Project Description:

trade among nations has been growing faster than the total world gdp. the growth of u.s.
exports and imports relative to the u.s. gdp parallels this global trend. today, exports
constitute more than 10 percent of total national production. in some countries, trade accounts
for a much higher share of total economic activity.
tasks:
consider the table below for the neighboring nations of northland and west coast. the table
lists the maximum feasible hourly rates of the production of pastries if no sandwiches are
produced and the maximum feasible hourly rates of the production of sandwiches if no pastries
are produced. assume that the opportunity costs of producing these goods are constant in both
nations.
product northland west coast
pastries (per hour) 50,000 100,000
sandwiches (per hour) 25,000 200,000
based on the data provided, what is the opportunity cost of producing pastries and
sandwiches in northland?
what is the opportunity cost of producing pastries and sandwiches in west coast?
which nation has a comparative advantage in producing pastries and which nation has a
comparative advantage in producing sandwiches?
suppose the two nations choose to specialize in producing the goods for which both
have a comparative advantage. both agree to trade at a rate of exchange of one pastry
for one sandwich. at this rate of exchange, what are the maximum numbers of pastries
and sandwiches that both could agree to trade?
remember to adhere to apa guidelines, standards, and formatting.
submission requirements:
submit the analysis for grading before the end of the week.
format: microsoft word
font: arial, 12-point, double-spaced, 1 page
Skills Required:
Project Stats:

Price Type: Negotiable

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