. Assume that Mexico is currently producing 200 units of corn and 300 units of tomatoes. Mexico...
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Assume that Mexico is currently producing 200 units of corn and 300 units of tomatoes. Mexico then begins to specialize by producing an extra 20 units of its good of comparative advantage. [This is an example of partial specialization.] Show the gains from trade for Mexico when the trading ratio (exchange ratio) equals 5 units of tomatoes per unit of corn. MEXICO Corn Tomatoes Before trade 200 300 With specialization With trade Assume that Mexico is currently producing 200 units of corn and 300 units of tomatoes. Mexico then begins to specialize by producing an extra 20 units of its good of comparative advantage. [This is an example of partial specialization.] Show the gains from trade for Mexico when the trading ratio (exchange ratio) equals 5 units of tomatoes per unit of corn. MEXICO Corn Tomatoes Before trade 200 300 With specialization With trade
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