Omega can produce either 18 oranges or 9 apples an hour, while Theda can produce either 16 oranges or 4 apples an hour. If the terms of trade are established as 1 apple for 4 oranges, then: there are no incentives for Theda to engage in international specialization and trade with Omega. it is in the interest of Theda to grow oranges and trade for apples. it is in the interest of both countries to specialize and trade with one another. there are no incentives for Omega or Theda to specialize and trade with one another. Calculate

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SOLUTION To determine the optimal trade arrangement between Omega and Theda we need to compare their opportunity costs for producing oranges and apples Opportunity cost refers to the value of the next ... View the full answer