Goods Produced by One Unit of Resources |
||
|
Corn |
Cotton |
Country A |
2,000 |
200 |
Country B |
1,000 |
800 |
(i) From the table above, do you believe that these two countries should trade with each other? If so, what good should Country A specialize in? What good should Country B specialize in?
(ii) If there is a basis for trade, rewrite the values in the table showing how much overall production of both goods will increase (thereby showing the benefits of trade)