Please show the gains from trade for producers and consumers in bot countries Can we see a catching up (factor price) pattern for both countries
Please show the gains from trade for producers and consumers in bot countries Can we see a catching up (factor price) pattern for both countries
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Assuming that there are only two countries in the world, Indonesia and ROW (Rest of the
World) which both produce Cloth (C) and Food (F) using labor as factor production. The
following table shows the number of hours of work needed to produce one unit of C and
F in both countries:
Cloth (C)
Food (F)
Indonesia
1 hour per meter
2 hour per kg
ROW
6 hour per meter
3 hour per kg](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe5e255a-2235-4630-a6e1-507feefa0bce%2F9310efae-09f3-4c95-a781-8f527f4918ad%2F9obuwz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assuming that there are only two countries in the world, Indonesia and ROW (Rest of the
World) which both produce Cloth (C) and Food (F) using labor as factor production. The
following table shows the number of hours of work needed to produce one unit of C and
F in both countries:
Cloth (C)
Food (F)
Indonesia
1 hour per meter
2 hour per kg
ROW
6 hour per meter
3 hour per kg
![Please show the gains from trade for producers and consumers in both
countries
Can we see a catching up (factor price) pattern for both countries](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe5e255a-2235-4630-a6e1-507feefa0bce%2F9310efae-09f3-4c95-a781-8f527f4918ad%2F2kkitwl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Please show the gains from trade for producers and consumers in both
countries
Can we see a catching up (factor price) pattern for both countries
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