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ECON 268 – Consider two countries, Home and Foreign

by | Dec 1, 2023 | Posted Questions

Consider two countries, Home and Foreign, in a Ricardian model. The wage rate in Home country is 5, while the wage rate in Foreign country is 10. After trade, only Home produces Kiwi. The labor unit requirement at Home country is 8. Does the unit labor requirement for Kiwi at Foreign has to be larger or smaller than some level? Which level?

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