suppose the following information is given for turkey and finland. in finland it takes two hours for each worker to prod
Posted: Wed Jul 06, 2022 6:23 pm
suppose the following information is given for turkey andfinland. in finland it takes two hours for each worker to producegrapes and two hours to produce a tomato. on the other hand turkishworkers only need one hour to produce the tomatoes by fourhours to produce grapes. assume there are only two workers one ineach county and each works 40 hours a week.
1. how much of each product can the country produce beforetrade?
2. identify which country has the comparative advantage andabsolute advantage on which products, show your calculations.
3. what could be th terms of trade? show how it will benefit forboth country.
1. how much of each product can the country produce beforetrade?
2. identify which country has the comparative advantage andabsolute advantage on which products, show your calculations.
3. what could be th terms of trade? show how it will benefit forboth country.