Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can produce either 76 units of pretzels or 15 units of cars per labour hour. Suppose Canada follows its comparative advantage in deciding what to produce and trade with Germany at a trade price of 0.45 units of cars for one unit of pretzel. For every 5190 units of the goods that Canada produces and trades with Germany, what are the gains from trade in terms of the other goods? Answer: units (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES. AND NO SEPARATOR FOR THOUSANDS IS REQUIRED.)

Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can produce either 76 units of pretzels or 15 units of cars per labour hour. Suppose Canada follows its comparative advantage in deciding what to produce and trade with Germany at a trade price of 0.45 units of cars for one unit of pretzel. For every 5190 units of the goods that Canada produces and trades with Germany, what are the gains from trade in terms of the other goods? Answer: units (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES. AND NO SEPARATOR FOR THOUSANDS IS REQUIRED.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 10P

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