The following table shows the number of days of labor required to produce 1 unit of output

Question:

The following table shows the number of days of labor required to produce 1 unit of output of computers and wheat in France and Germany:

(a) Calculate the autarky price ratios.
(b) Which country has a comparative advantage in computers? Explain why. Which has a comparative advantage in wheat? Explain why.
(c) If the terms of trade are 1 computer: 22 wheat, how many days of labor does France save per unit of its import good by engaging in trade? How many days does Germany save per unit of its import good?
(d) If the terms of trade are 1 computer:24 wheat, how many days of labor do France and Germany each save per unit of their respective import good?
(e) What can be said about the comparative distribution of the gains from trade between France and Germany in part (d) and part (c)? Why?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...