Internationalimmobilityof resources is compensatedbytheinternationalflowof  goods. Justify the statement

The sccompanying hypothetical production possibilities tables are for New Zesiand and Spain. Esch country can produce spples and plums New Zealand's Production Possibllities Table (Millions of Bushels) Production Alternatives Product Apples 28 60 Plus 15 18 Spain's Production PossIblilties Table (Millions of Bushels) Production Alternatives Product Apples Plums 20 48 20 a. Plotthe production possibilities dsta for esch of the two countries separatejy. Show the tracling possibilities lines for each nation if the sctusl terms of trade sre 1 plum for 2 spples. Instructions: (I Use the tools provided, 'PPC NZ' snd 'PPC SP iplat 4 polnts esch) to drsw the PPC curves. (2) Use the tool provided, ToT, in esch diegram (elot 4 points esch) to draw the trading possibilities lines for esch nation. To earn full credit, you must correctly plot al points for esch Iine. New Zealand Spain Tools 140 Tools 120 TOT PPC s TOT 100 80 40 40 20 20 5 10 15 20 25 30 35 40 10 20 30 40 50 60 70 80 Plums (millions…

Y/L₁ A B с APF₁ APF₁ .HK/L Using the above diagram, fill in the space below with the correct movement described in the scenario below: **If it is A to C put AC, if it is C to A put CA, if it is A to B put AB, if it is B to A put AB** Scenario: In Budapest, it was decided that they would spend more government money on building more schools and providing adequate primary education. The best way to show this specific change is

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2) Assume that Mexico has a higher labor-to-capital ratio than the United States, leaving the United States mostly endowed with capital relative to Mexico. Assume also that clothing is labor-intensive in production relative to autos. a. Use the factor endowment theory framework to label the two transformation schedules below, indicating which one represents Mexico and which one the United States. Qeioting Relothing Qauios autos b. Assuming similar tastes or preferences as reflected in the two indifference curves shown in part a, draw the pre-trade price line for each country. Which one is steeper? What does this mean? In which country are autos relatively more expensive? 3.