Macro and micro economics Assignment Example | Topics and Well Written Essays - 500 words

Macro and micro economics - Assignment Example Letting the price of shirts be x and that of computers be y. The two countries might trade if the price of computers is: y=11/12x d) There will be less trade between the two countries. The economic well-being of the citizens of the two countries improves since both can acquire the commodities locally. a) The worker in Brazil. This is because they can produce one ounce of coffee in loess time as compared to the worker in Peru and also produce soya beans at a higher rate. b) The worker in Brazil. This is because they can produce the same amount of coffee as the worker in Peru but at a faster rate or within few minutes. c) Peru will import coffee. Brazil will specialize in producing coffee and hence export to Peru. Peru will specialize in production of soya beans. d) After the country specialize in producing and exporting those commodities which they can produce at a relatively lower cost and import those goods which are relatively expensive to produce.