-Refer to above figure. In autarky, Country P was producing at point 5. With trade, would its production point be found above or below point 5?
Explain why. What must happen in the K/L intensity ratio in the production of each of the products in this country when moving from autarky to free trade?

Question

-Refer to above figure. In autarky, Country P was producing at point 5. With trade, would its production point be found above or below point 5?
 Explain why. What must happen in the K/L intensity ratio in the production of each of the products in this country when moving from autarky to free trade?

Quizplus · Accepted Answer

The Answer of 
-Refer to above figure. In autarky, Country P was producing at point 5. With trade, would its production point be found above or below point 5?
 Explain why. What must happen in the K/L intensity ratio in the production of each of the products in this country when moving from autarky to free trade?

-Refer to Above Figure