Appendix A International Trade Homework Questions

  1. Complete this chart and related questions.

 

Hours to Produce

Hours
Available

 Maximum
Computers		 Maximum
TV's
Computers TV's
U.S. 4 3 1,200    
JAPAN 3 2 600    

A. Which country has an absolute advantage in TV's?   ___________

                                                        in computers    ___________

 

B. Draw a linear production possibility frontier for each country putting TV's on the x-axis.

 

 

 

 

 

C. Calculate the opportunity costs for each product and each country.

 

 

 

D. Which country has a comparative advantage in which products?  Why?

 

 

 

E. Which country should specialize in which product? Why?

 

 

 

 

 

Answers to Appendix A Homework Questions Table of Contents
Appendix A  Class Discussion Questions Economics Free Stuff