Business, 18.05.2021 19:10, cassandramanuel

Suppose France and the United States do not trade and the competitive price of an ordinary bottle of wine is 40 francs in France and $2 in the United States. The price of wheat per bushel is 40 francs in France and $6 in the United States. If prices reflect only the differences in costs of the resources to produce wine and wheat in the two countries, this information is sufficient to enable us to state that:

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Suppose France and the United States do not trade and the competitive price of an ordinary bottle of...