Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn

Exercise 15

Suppose that the opportunity-cost ratio for watches and cheese is 1 C = 1 W in Switzerland but 1 C = 4 W in Japan. At which of the following international exchange ratios (terms of trade) will Switzerland and Japan be willing to specialize and engage in trade with each other. Select one or more answers from the choices shown.
A) 1 C = 3 W.
B)
C) 1 C = 5 W.
D)
E) 2 C = 1 W.