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In Germany, the price of the BMW you wish to buy is 100,000 euros (€). Using the “Key Currency Cross Rates Table” provided above, what is the peso price of this car in Mexico City (ignore taxes,…
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Download file to see previous pages... US has an absolute advantage in ______________Chemicals____________ (apparel, chemicals, both apparel and chemicals, neither apparel nor chemicals).
e. China has a comparative advantage in ________ both apparel and chemicals __________________ (apparel, chemicals, both apparel and chemicals, neither apparel nor chemicals). US has a comparative advantage in __________ neither apparel nor chemicals ________________ (apparel, chemicals, both apparel and chemicals, neither apparel nor chemicals).
g. Compared to the initial optimal product combinations D and S, world output of chemicals is ________smaller________ (smaller, greater) by __18___ tons of chemicals and world output of apparel is ________greater________ (smaller, greater) by __28___ 1000 units of apparel.
i. Based on the actual terms of trade in previous part of this question, US can now choose four 1000 units of apparel and ___1.5___ tons of chemicals and China can now choose six tons of chemicals and ___1.5___ 1000 units of apparel. Specialization and trade between the two nations has ______decreased________ (decreased, increased) the standard of living in US and has ________Increased______ (decreased, increased) the standard of living in ...Download file to see next pagesRead More
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