Chapter Organization Introduction The Concept
... • In the absence of trade, Foreign can use one unit of labor to produce 1/a*LC = 1/6 pound of cheese using the domestic technology. • Can it do better by specializing in wine and trading wine with Home for cheese? • In the presence of trade, Foreign can use one unit of labor to produce 1/a*LW = 1/3 ...
... • In the absence of trade, Foreign can use one unit of labor to produce 1/a*LC = 1/6 pound of cheese using the domestic technology. • Can it do better by specializing in wine and trading wine with Home for cheese? • In the presence of trade, Foreign can use one unit of labor to produce 1/a*LW = 1/3 ...
Notes on Competitive Trade Theory
... variety of models with the hope that each will lend insight to a different aspect of the reality that we seek to understand. From here, it is a matter of the quality of our discretion whether we use the models appropriately. In principle, a theory of international trade could be developed from two d ...
... variety of models with the hope that each will lend insight to a different aspect of the reality that we seek to understand. From here, it is a matter of the quality of our discretion whether we use the models appropriately. In principle, a theory of international trade could be developed from two d ...
