Refer to the information provided in Table 18.5 below to answer the questions that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 18.5
-Refer to Table 18.5. Which terms of trade benefits both countries?

Question

Refer to the information provided in Table 18.5 below to answer the questions that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 18.5 
-Refer to Table 18.5. Which terms of trade benefits both countries?

Quizplus · Accepted Answer

The terms of trade must fall between the opportunity costs of both countries. If 1 bushel of cashews is traded for 6 lbs. of tea, it is likely beneficial for both countries, assuming the opportunity costs align with this ratio.

Refer to the Information Provided in Table 18