Question: 4. Assume again that the two countries specialize as you suggested in Question 2 and that Germany exports 35% of its production to India using

4. Assume again that the two countries specialize as you suggested in Question 2 and that Germany exports 35% of its production to India using Germany's domestic price as the trade price between the two countries. a) What would be the respective consumption of tea and beer in the two countries? b) Who benefits the most out of this trade arrangement and why?

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