Ireland and Japan are assumed to produce only wool and steel, to have full employment and complete mobility of resources. Their production possibilities boundaries before trade are drawn in solid lines. It is assumed that the two countries have the same amount of resources. Their consumption possibilities after trade are shown by the dotted line. The outputs of wool and steel are given in physical units. FIGURE 33- 1
-Refer to Figure 33- 1. When trade between Ireland and Japan begins, the probable trade pattern is to

Question

Ireland and Japan are assumed to produce only wool and steel, to have full employment and complete mobility of resources. Their production possibilities boundaries before trade are drawn in solid lines. It is assumed that the two countries have the same amount of resources. Their consumption possibilities after trade are shown by the dotted line. The outputs of wool and steel are given in physical units.  FIGURE 33- 1
-Refer to Figure 33- 1. When trade between Ireland and Japan begins, the probable trade pattern is to

Quizplus · Accepted Answer

Ireland is likely to export wool to Japan, and Japan is likely to export steel to Ireland, based on comparative advantage and resource availability in each country.

Ireland and Japan Are Assumed to Produce Only Wool and Steel