Suppose that the labor requirements per unit of output in each of the two industries in Each of three countries are as follows:
In this situation, with an international terms of trade of 1 cloth:2 wheat (or 1 wheat:½ cloth) , __________ would export cloth and import wheat; if the terms of trade were, instead, 1 wheat:¾ cloth (or 1 cloth:1 wheat) , __________ would export cloth and import wheat.
A) France and the United States; Spain
B) Spain and France; France
C) France and the United States; Spain and the United States
D) Spain and France; Spain and the United States
Correct Answer:
Verified
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