Answer the Next Three Questions on the Basis of the Following

question 12

Essay

Answer the next three questions on the basis of the following production possibilities data for Francia and Galacia.All data are in tons. (a) If trade occurs between Francia and Galacia, which nation should export what product? Why?(b) What are the limits of the terms of trade between Francia and Galacia?(c) Assume that prior to specialization and trade, Francia and Galacia chose production possibility "C." Now each specializes according to comparative advantage.What will be the resulting gains from trade? Explain your answer.

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Definitions:

SEDAR

An online system used in Canada for the filing and retrieval of documents related to the securities industry, similar to the SEC's EDGAR system in the United States.

Insider Trade

The buying or selling of a company's securities by someone with access to confidential or non-public information about the company.

Dramatic Departure

A term that signifies a significant shift or change from the usual, expected, or traditional course, often implying dramatic or consequential actions.