Analyzing comparative advantage theory.
Create an example of a comparative advantage model by 'choosing two countries and two products.
Evaluate the transition from autarky to trade in your diagram label the trade flows, and demonstrate the gains from trade.
|
Output per unit of Labor:
|
|
|
X
|
Y
|
|
H
|
8
|
15
|
|
F
|
10
|
30
|