Suppose the two countries can trade shares in the ownership of their perspective assets.Further assume that a Home owner of a 25 percent share in Foreign land.He will receive 25 percent share in Foreign land and thus receives 25 percent of the annual Foreign kiwi fruit harvest.Further assume that also that a Foreign owner of a 25 percent share in Home land is permitted.In this case,a Foreigner is entitled to 25 percent of the Home harvest.Calculate the expected value of kiwi fruit for each investor.

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The Answer of Suppose the two countries can trade shares in the ownership of their perspective assets.Further assume that a Home owner of a 25 percent share in Foreign land.He will receive 25 percent share in Foreign land and thus receives 25 percent of the annual Foreign kiwi fruit harvest.Further assume that also that a Foreign owner of a 25 percent share in Home land is permitted.In this case,a Foreigner is entitled to 25 percent of the Home harvest.Calculate the expected value of kiwi fruit for each investor.

Suppose the Two Countries Can Trade Shares in the Ownership