Suppose there are 4 economies as trading partners: A; B; Vs ; D. In 2021, A sale of exotic fruits (mango, etc.) to B for 500 thousand euros, B sends the exotic fruits to C for it to transform into dried according to the conformity of the European food safety certification, the processing cost is 10 thousand euros, C returns the dried fruit to B and pays 2 thousand euros and B exports them to D for 580 thousand euros.

Suppose there are 4 economies as trading partners: A; B; Vs ; D. In 2021, A sale of exotic fruits (mango, etc.) to B for 500 thousand euros, B sends the exotic fruits to C for it to transform into dried according to the conformity of the European food safety certification, the processing cost is 10 thousand euros, C returns the dried fruit to B and pays 2 thousand euros and B exports them to D for 580 thousand euros.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 4SCQ: In Germany it takes three workers to make one television and four workers to make one video camera....

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