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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
3. Consider the following model of trade between Home and Foreign. Assume
throughout that those two countries are the only two countries in the world, at
least for purposes of trade. There are two goods: Tables and Chairs. Consumers
always spend two fifths of their income on chairs and the remainder on tables.
The only factor of production is labour. Each home country worker can produce 1
table or 4 chairs per unit of time, while each foreign worker can produce 2 tables
or 2 chairs per unit of time. There are 20 workers in Home and 30 in Foreign.
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