Which country has a comparative advantage in producing shoes? With international trade, explain which country would export shoes and how the price of shoes in the importing country and the quantity produced by the importing country would change. Explain which country gains from this trade.

Use Figures 18.1 and 18.2 to work Problems 1 to 4. Figure 18.1 and 18.2 show the markets for shoes if there is no international trade between the United States and Brazil. 

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FIGURE 18.1 FIGURE 18.2 Chapter Checkpoint Study Plan ProblemsI to 4 Chapter Checkpoint Study Plan Problems I to 4 Price (dollars per pair) Price (dollars per pair) 40. 40 30 30- 20 20 ....... 10 10 2. 10 3 4 Quantity (millions of pairs per year) Quantity (millions of pairs per year)