Suppose in the Country of Nash That the Price of Oranges

question 179

Short Answer

Suppose in the country of Nash that the price of oranges is $8 per bushel with no trade allowed. If the world price of oranges is $10 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of oranges?

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Definitions:

Productivity

A measure of the efficiency of production, often expressed as the ratio of output to inputs used in a production process.

Inputs

Resources such as labor, capital, materials, and information used in the production of goods or services.

International Quality Standards

A set of formalized rules and guidelines for production and manufacturing that ensure products meet certain requirements for global trade.

ISO 9000

The set of standards that certifies that a business is using processes and principles to ensure the production of quality products.