International Trade Worksheet ECO/372

International Trade Worksheet ECO/372 Buy Solutions: http://hwsoloutions.com/downloads/international-trade-worksheet-eco372/ nternational Trade Worksheet ECO/372 Use the information in the graphs below to fill in the blanks. Each graph represents the country’s production possibilities assuming full employment and efficient use of available resources. Use the graphs to determine how much each country would be able to produce assuming it specializes according to its comparative advantage. International Trade Worksheet ECO/372 Consumption Production if there Units of Consumption and production is specialization output traded in the free if no trade or according to Exports (-) trade specialization comparative advantage Imports (+) equilibrium Country A 100 wheat ________ wheat – 80 wheat ________ wheat 25 TVs ________ TVs + 40 TVs ________ TVs Country B 40 wheat ________ wheat + 80 wheat ________ wheat 40 TVs ________ TVs – 40 TVs ________ TVs With no trade or specialization, total consumption is equal to 140 units of wheat and __________ TVs. After specialization and free trade, total consumption is equal to 200 units of wheat and __________ TVs. As a result of specialization and trade, world output of wheat rose by 60 units and world output of TVs rose by __________ units.