The following is a productivity schedule for two countries, Pura Cendana and Antah Berantah. (d) (e) (f) Beef Computer Pura Cendana 10 8 Antah Berantah 6 6 Suggest the terms of trade that would be acceptable to both countries. If both countries allocate 60% of their resources in Beef's industry and the remaining 40% in Computer' industry before they trade, construct a table to show production of each country before trade. Assume that both countries decide to trade and resort to complete specialization. Construct a table to show production of each country after trade.

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Author:Steven A. Greenlaw; David Shapiro
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Chapter33: International Trade
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The following is a productivity schedule for two countries, Pura Cendana and Antah
Berantah.
(d)
Beef
Computer
(f)
Pura Cendana
10
8
Antah Berantah
6
6
Suggest the terms of trade that would be acceptable to both countries.
(e)
If both countries allocate 60% of their resources in Beef's industry and the
remaining 40% in Computer' industry before they trade, construct a table
to show production of each country before trade.
Assume that both countries decide to trade and resort to complete
specialization. Construct a table to show production of each country after
trade.
Transcribed Image Text:The following is a productivity schedule for two countries, Pura Cendana and Antah Berantah. (d) Beef Computer (f) Pura Cendana 10 8 Antah Berantah 6 6 Suggest the terms of trade that would be acceptable to both countries. (e) If both countries allocate 60% of their resources in Beef's industry and the remaining 40% in Computer' industry before they trade, construct a table to show production of each country before trade. Assume that both countries decide to trade and resort to complete specialization. Construct a table to show production of each country after trade.
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