The Power of Trade and Comparative Advantage: Work It Out 3 ? Here's another specialization and exchange
Question:
The Power of Trade and Comparative Advantage: Work It Out 3 ? Here's another specialization and exchange problem. This problem is wholly made-up, ? so that you won't be able to use your intuition about the names of countries or the products to figure out the answer. Consider the following productivity table: c. ?One billion hours of labor are available for making products in Mandovia, and 2 ?billion hours of labor are available for making products in Ducennia. In a no-trade world, let's assume that half the labor in each country gets used to make each product. Calculate the output of rotids and taurons, rounding to one decimal place. Output of rotids for Mandovia: Total rotid output: Output of taurons for Mandovia: million million million Output of taurons for Ducennia: million Output of rotids for Ducennia: million
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr