There are 100 workers in Vietnam, and each worker can produce either 10 shirts or 2 hats. There are 200 workers in the B

[answerhappygod]

There are 100 workers in Vietnam, and each worker can produce
either 10 shirts or 2 hats. There are 200 workers in the
Bangladesh, and each can produce 4 shirts or
10 hats.
a. Draw the Production Possibility Curves (PPC) for each country.
What is the opportunity cost of shirts in Vietnam? What is the
opportunity cost of shirts in
Bangladesh? Which country has a comparative advantage in the
production of shirts? (5 marks)
b. In the absence of trade, if Vietnam consumes 600 shirts, how
many hats can it consume? In the absence of trade, if Bangladesh
consumes 500 hats, how
many shirts can it consume? (2 marks)
c. Someone now proposes that Bangladesh and Vietnam enter into a
trade agreement. Under this agreement, the Bangladesh will give
Vietnam 500 hats
and Vietnam will give Bangladesh 200 shirts. If Vietnam continues
to consume 600 shirts, how many hats will it be able to consume
under this
proposal? If Bangladesh continues to consume 500 hats, how many
shirts will it be able to consume under this proposal? Should
Vietnam accept this
proposal? Should Bangladesh accept this proposal? (3 marks)