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International economics Essay
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Excerpt from Term Paper:
International economics Essay homework
......5. . Fig. 4 Output production table
| |X |Y |
|I |10 |0 |
|II |0 |20 |
|World |10 |20 |
| |X |Y |
|I |6 |(4*18)/7 |
|II |4 |68/7 |
|World |10 |20 |
exchange 4 of its 10 units of X, it will get (10 units of Y in return rounded from 10.28=(4*18)/7). This implies that country II will consume the other 10 units of Y (rounded from 68/7) and 4 units of X, so that the world production is all consumed. Country I will consumer more of Y products and country II will consumer more of X products after trade
6. Given the output consumption table in fig. 5 we can notice that country I has an absolute in the consumption of X and Y (10.28>68/7)......
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