International Economics Volume 1 International Trade Krugman English AnswersChapter 21.Home has 1200 units of labor available It can produce two goods apples and bananas The unit labor requirement in
bananas from Foreign, while Foreign will specialize in banana production, export bananas and import apples from Home. The pattern of trade will be based on comparative advantage, with each country specializing in the production of the good in which it has a lower opportunity cost.
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