Suppose Argentina (A) and Bolivia (B) Only Trade with Each

question 80

Essay

Suppose Argentina (A) and Bolivia (B) only trade with each other and they both produce the same two goods: grocery (G) and fish (F).Given its resources,Argentina can produce either 2 units of grocery per day or 1 unit of fish; Bolivia can produce either 5 units of grocery or 4 units of fish.
a.Draw the production possibilities frontiers for each country on separate graphs.
b.If there were no trade,what would be the local price of fish in each country,measured in units of grocery
c.If trade is allowed,which country will export fish and which country will export grocery (if any)
d.What are the gains from trading a unit of fish if the international price of fish is equal to the average of the local prices in the two countries
e.How are the gains from trade distributed
Comment on your result.

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Definitions:

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Bearings that use cylindrical or spherical rollers positioned between two races to reduce friction and support radial and axial loads.

Needle Bearings

A type of roller bearing with long, thin cylindrical rollers resembling needles, used in applications with limited space and high load capacity.

Journal Bearings

Journal bearings are a type of plain bearing that support radial loads by enclosing the shaft along its length, offering a smooth, lubricated surface for the shaft to rotate within.

Sleeve Bearings

Bearings consisting of a cylindrically shaped liner that allows for relative motion by sliding, used in various machinery for rotational or sliding movements.