Answer:
By comparing the opportunity cost of producing wine in the two countries, you can tell that SPAIN has a comparative advantage in the production of wine and DENMARK has a comparative advantage in the production of rye.
Suppose that Spain and Denmark consider trading wine and rye with each other. Spain can gain from specialization and trade as long as it receives more than 4 bushels of rye for each bottle of wine it exports to Denmark. Similarly, Denmark can gain from trade as long as it receives more than 1/10 of wine for each bushel of rye it exports to Spain.
Based on your answer to the last question, which of the following terms of trade (that is, price of wine in terms of rye) would allow both Denmark and Spain to gain from trade? Check all that apply.
- b. 8 bushels of rye per bottle of wine
- c. 9 bushels of rye per bottle of wine
Explanation:
Spain
wine = 4 bushels of rye
bushels of rye = 1/4 wine
Denmark
wine = 10 bushels of rye
bushels of rye = 1/10 wine
Answer:
A. trade agreements systematically expect more liberalization by developing countries than is expected of developed countries
Answer: See explanation
Explanation:
Yes. I believe that my company should have included a warning label to address use of the electric lawn mower in the rain.
Since the warning wasn't put there, the customers will believe it is safe to use in the rain that which was exactly what happened in this case. It is the right of the manufacturer to make sure that it's product are safe to use.
I think the qns is not complete.