SY 'I commodities: coconuts and passion fruits. The table below contains the amount of each commodity produced per hour of labour in the two nations in terms of Kg. Panama Guatemala Passion fruits 9. 4 Coconuts c) Suppose passion fruits and coconuts are exchanged internationally at a rate of 1.2 passion fruit per coconut. Which country will export coconuts and why? Assuming both countries have 180 hours of labour each draw the PPFS of both countries to
SY 'I commodities: coconuts and passion fruits. The table below contains the amount of each commodity produced per hour of labour in the two nations in terms of Kg. Panama Guatemala Passion fruits 9. 4 Coconuts c) Suppose passion fruits and coconuts are exchanged internationally at a rate of 1.2 passion fruit per coconut. Which country will export coconuts and why? Assuming both countries have 180 hours of labour each draw the PPFS of both countries to
Chapter18: International Trade And Comparative Advantage
Section: Chapter Questions
Problem 6DQ
Related questions
Question
![Question 1: Assume there are two nations: Panama and Guatemala that produce two
commodities: coconuts and passion fruits. The table below contains the amount of each
commodity produced per hour of labour in the two nations in terms of Kg.
Panama
Guatemala
Passion fruits
9
4
Соconuts
6.
c) Suppose passion fruits and coconuts are exchanged internationally at a rate of 1.2
passion fruit per coconut. Which country will export coconuts and why? Assuming
both countries have 180 hours of labour each, draw the PPFS of both countries to
your answer and explain why both countries are better off after trade.
illustrate
d) Draw the world supply curve of coconuts.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F887eb69d-bfff-45c4-a97e-8f0dacb70ab7%2F4dd27bb0-d585-41f6-b0e7-93fa7469a232%2Fh4onujq_processed.png&w=3840&q=75)
Transcribed Image Text:Question 1: Assume there are two nations: Panama and Guatemala that produce two
commodities: coconuts and passion fruits. The table below contains the amount of each
commodity produced per hour of labour in the two nations in terms of Kg.
Panama
Guatemala
Passion fruits
9
4
Соconuts
6.
c) Suppose passion fruits and coconuts are exchanged internationally at a rate of 1.2
passion fruit per coconut. Which country will export coconuts and why? Assuming
both countries have 180 hours of labour each, draw the PPFS of both countries to
your answer and explain why both countries are better off after trade.
illustrate
d) Draw the world supply curve of coconuts.
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