International trade 1. Consider a Ricardian model with two countries, the US and Ecuador, producing two goods, bananas and machines. Suppose the unit-labor requirements are: aLBUS= 8, aLBE = 4, aLMUS = 2, aLME = 4. Let the US have 3200 workers and Ecuador have 400 workers. a. Specify a plausible free trade terms of trade
International trade 1. Consider a Ricardian model with two countries, the US and Ecuador, producing two goods, bananas and machines. Suppose the unit-labor requirements are: aLBUS= 8, aLBE = 4, aLMUS = 2, aLME = 4. Let the US have 3200 workers and Ecuador have 400 workers. a. Specify a plausible free trade terms of trade
Chapter1: Making Economics Decisions
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International trade
1. Consider a Ricardian model with two countries, the US and Ecuador, producing two goods, bananas and machines. Suppose the unit-labor requirements are:
aLBUS= 8, aLBE = 4, aLMUS = 2, aLME = 4.
Let the US have 3200 workers and Ecuador have 400 workers.
a. Specify a plausible free trade terms of trade.
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