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

Exercise 30

Suppose that the opportunity-cost ratio for watches and cheese is 1C ? 1 W in Switzerland but 1C ?4W 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 chokes shown.
A) 1C ? 3 W.
B) 1 C? ½ W.
C) 1C ? 5 W.
D) ½ C= 1W.
E) 2C ? 1W.