Man Hour Required to
Produce Unit of Output

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              Country
A
           
Country B

Good X        
5                   
15


Good Y        
1                   
5


1.)What is the pre-trade
price ratio in each country? Why?


2.)What will be the post-trade price ratio or international terms
of trade?


3.)Which country would
prefer an international terms of trade of 5? 3? Why?

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