Question:
|
Canada |
Japan |
Beff |
6 |
5 |
Computers |
2 |
4 |
a. Which country has the absolute advantage in beef production?
b. Which country has the absolute advantage in computer production?
c. Which country has the comparative advantage in beef production?
d. Which country has the comparative advantage in computer production?
e. What are the limits of the terms of trade? Specifically, when is Canada willing to trade with Japan, and when is Japan willing to trade with Canada?