Country A (rich in labor) and country B (rich in capital) produce good X (labor-intensive) and...

 

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Country A (rich in labor) and country B (rich in capital) produce good X (labor-intensive) and good Y (capital-intensive). Before trading, the equilibrium points of the closed economy of the two countries are NA and NB, respectively, and after trading, a new equilibrium point Nc is created. The relative prices of goods X and Y in country A before trade are PA the relative prices of goods X and Y in country B are PB, and the relative prices of goods X and Y after trade are PC. A" PA< PC< PB Use production possibility curves and social indifference curves to analyze changes in consumption, imports and exports, and social welfare before and after trade between two countries if production remains the same! (Analyze the situation of 2 countries in one coordinate graph) Be sure to please analyze the situation of 2 countries in one coordinate graph!!! Country A (rich in labor) and country B (rich in capital) produce good X (labor-intensive) and good Y (capital-intensive). Before trading, the equilibrium points of the closed economy of the two countries are NA and NB, respectively, and after trading, a new equilibrium point Nc is created. The relative prices of goods X and Y in country A before trade are PA the relative prices of goods X and Y in country B are PB, and the relative prices of goods X and Y after trade are PC. A" PA< PC< PB Use production possibility curves and social indifference curves to analyze changes in consumption, imports and exports, and social welfare before and after trade between two countries if production remains the same! (Analyze the situation of 2 countries in one coordinate graph) Be sure to please analyze the situation of 2 countries in one coordinate graph!!!

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