Question: Economics Consider a world with only two countries: Germany and France. The table below describes the labor endowments and production technologies for each country. Germany

The table below describes the labor endowments and production technologies for each

Economics Consider a world with only two countries: Germany and France. The table below describes the labor endowments and production technologies for each country. Germany France Total labor force 20 40 Production Function for: wine QW=2L QW=10L cars QC=10L QC=2L Now, suppose Germany and France are free to trade. e) Describe the pattern of trade. f) What happens to the composition of output in each country? g) What is the possible range in which the free trade world price of wine/cars could fall

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