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Myanmar_and_Cuba_COMPARATIVE_ADVANTAGE_Poppy

Myanmar_and_Cuba_COMPARATIVE_ADVANTAGE_Poppy - 4D = 4D x[R...

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Myanmar and Cuba COMPARATIVE ADVANTAGE Time Per Unit Myanmar Cuba Poppy 1 Day 4 Days Rum 2 Days 3 Days Opportunity-Cost Table [lower numbers are better] Myanmar Cuba P 1 P = ½ Rum 1 P = 4/3 Rum [1/2 <4/3 Myanmar CA is P] If no P, free 1 Day x [R / 2 D]
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Unformatted text preview: 4D = 4D x [R / 3D] R 1 R = 2 Poppy 1 R = ¾ Poppy [2 > 3/4 Cuba CA is R] 2 D = 2 D x [P / 1D] 3 D x [P / 4 D] Trading range: (arbitrarily) select numeraire, e.g. rum 1 R = ________ P [3/4 to 2 is the range]...
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