Felici8306 Felici8306

07-06-2023
Business

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Country N has the comparative advantage in
textiles
cars
both cars and textiles
cannot be determined from the information given
If these two nations DO NOT engage in trade, the maximum amount of cars available for consumption in Country M is (i.e., the vertical-axis intercept of its CPFw/o trade) a. 10 units of cars
15 units of cars
20 units of cars
30 units of cars
cannot be determined from the information given
Assume that both countries completely specialize in that product for which they have a comparative
advantage, and the terms of trade are given as 1 car trades for 1 textile. If these two nations DO engage in trade, the maximum amount of cars available for consumption in Country M is a. 10 units of cars
15 units of cars
20 units of cars
30 units of cars
FIGURE ONE
30 textile 10 textile

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