There are 100 workers in Vietnam, and each worker can produce either 10 shirts or 2 hats. There are 200 workers in the Bangladesh, and each can produce 4 shirts or 10 hats.] a. Draw the Production Possibility Curves (PPC) for each country. What is the opportunity cost of shirts in Vietnam? What is the opportunity cost of shirts in Bangladesh? Which country has a comparative advantage in the production of shirts? b. In the absence of trade, if Vietnam consumes 600 shirts, how many hats can it consume? In the absence of trade, if Bangladesh consumes 500 hats, how many shirts can it consume? c. Someone now proposes that Bangladesh and Vietnam enter into a trade agreement. Under this agreement, the Bangladesh will give Vietnam 500 hats and Vietnam will give Bangladesh 200 shirts. If Vietnam continues to consume 600 shirts, how many hats will it be able to: consume under this proposal? If Bangladesh continues to consume 500 hats, how many shirts will it be able to consume under this proposal? Should Vietnam accept this proposal? Should Bangladesh accept this proposal?
There are 100 workers in Vietnam, and each worker can produce either 10 shirts or 2 hats. There are 200 workers in the Bangladesh, and each can produce 4 shirts or 10 hats.]
a. Draw the Production Possibility
b. In the absence of trade, if Vietnam consumes 600 shirts, how many hats can it consume? In the absence of trade, if Bangladesh consumes 500 hats, how many shirts can it consume?
c. Someone now proposes that Bangladesh and Vietnam enter into a trade agreement. Under this agreement, the Bangladesh will give Vietnam 500 hats and Vietnam will give Bangladesh 200 shirts. If Vietnam continues to consume 600 shirts, how many hats will it be able to: consume under this proposal? If Bangladesh continues to consume 500 hats, how many shirts will it be able to consume under this proposal? Should Vietnam accept this proposal? Should Bangladesh accept this proposal?
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