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international economics

Question 1 Consider a two-country, two-goods world. Trade is based on comparative advantage. You are given the following information (which applies to the whole question, unless otherwise stated): ? One labour can produce 20 toasters (T) or produce 40 ovens (O) in Home (H); while one unitof foreign labour can produce 25 units and 50 units of toasters and ovens respectively. ? The labour endowment in Home is 500, which is one-hundred units more

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25 Other / Other University Of Toronto / MGEC93 18 Nov 2020