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Unformatted text preview: producing autos. 5. Why does the relative price of cheese to wine have to be the same in the two countries under free trade? 6. How does the relative price of cheese to wine under free trade compare to the prices in the countries before trade. 7. Why might wages in one country fall below wages in another country under free trade? 8. What counters complaints that low wages are a source of unfair competition and complaints that workers in developing countries are exploited?...
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This note was uploaded on 02/13/2012 for the course ECON 452 taught by Professor Vacaflores during the Fall '06 term at Texas A&M.
- Fall '06
- Comparative Advantage