If the following three commodities are included in the example in Question 2, what will the export and import pattern be? Will your answer change if a transportation charge of 1 hour/ commodity is taken into consideration? Why or why not? 11eb7126_36cb_4910_891f_bb0b15ed5847_SM2649_00 Question 2 Consider the following Classical labor requirements: 11eb7126_36cb_4911_891f_19419060320a_SM2649_00 ( a ) Why is there a basis for trade? ( b ) With trade, Italy should export _____ and Switzerland should export _____ because _____. ( c ) The international terms of trade must lie between _____ and _____. ( d ) If the wage rate in Italy is €4/hr, the wage rate in Switzerland is 3.5 francs/hr, and the exchange rate is 1 franc/€1, what are the commodity terms of trade?

International Economics 8th Edition by Dennis Appleyard, Alfred Field

النسخة 8الرقم المعياري الدولي: 9780078021671

International Economics 8th Edition by Dennis Appleyard, Alfred Field

النسخة 8الرقم المعياري الدولي: 9780078021671

تمرين 4

If the following three commodities are included in the example in Question 2, what will the export and import pattern be? Will your answer change if a transportation charge of 1 hour/ commodity is taken into consideration? Why or why not?

Question 2
Consider the following Classical labor requirements:

( a ) Why is there a basis for trade?
( b ) With trade, Italy should export _____ and Switzerland should export _____ because _____.
( c ) The international terms of trade must lie between _____ and _____.
( d ) If the wage rate in Italy is €4/hr, the wage rate in Switzerland is 3.5 francs/hr, and the exchange rate is 1 franc/€1, what are the commodity terms of trade?

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Import and export that occur during a tr...