New solution updates
1. Using the data in the table (in the attached document), answer the following question
a. For which good does Canada have a comparative advantage?
b. For which good does Italy have a comparative advantage?
c. What might be a set of favorable terms of trade for the two countries?
d. Prove that both countries would be better off in the specialization-trade case than in the no-specialization-no-trade case.
Solution ID:351078 | This paper was updated on 26-Nov-2015Price : $30