Exam 15: Foreign Trade

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The following data outline production choices (A or B) in two nations, Landia and Scandia. Landia has a workforce of 12 and Scandia has a workforce of 10. Output per worker in Landia Output per worker in Scandia Fish 8 0 Fish 16 0 Chips 0 40 Chips 0 48 -Assume that before specialization and trade,each nation devoted half of its workforce to each product.If these two nations now fully specialize in accordance with comparative advantage,the total gains from specialization would be:

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The following data outline production choices (A or B) in two nations, Latalia and Trombonia. Latalia has a workforce of 14 and Trombonia has a workforce of 10. Output per worker in Latalia Output per worker in Trombonia A B A B Pork (tons) 4 0 Pork (tons) 8 0 Beans (tons) 0 20 Beans (tons) 0 24 -If these two nations specialize in accordance with the principle of comparative advantage:

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  -Given the tariff,the quantities sold by foreign and domestic producers,respectively,would be: -Given the tariff,the quantities sold by foreign and domestic producers,respectively,would be:

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