Imagine the following case study where two different countries: Albania and Belize have remained self-sufficient and mostly produce two of the following products: corn and beets. Our hopes are that we...

Questions D,E,F.

Extracted text: Imagine the following case study where two different countries: Albania and Belize have remained self-sufficient and mostly produce two of the following products: corn and beets. Our hopes are that we will be able to improve trade liberalization and encourage each one to work together in order to improve the number of resources and goods each one provides to their population. Here are their production levels for each product per worker/month (assume each country has a workforce for 15 workers): Bushels Corn (Y-аxis) Вets (X-аxis) Albania 40 20 Belize 20 4 Calculate and graph the Production possibilities frontiers for both countries. b) Assume that both countries currently prefer equal amounts of corn and beet for their production & consumption levels within their country, clearly label this point and call it point B: production/consumption before trade. c) Calculate and state the number of workers that would be required in order to produce points B for both countries. a) d) Complete the table below showing the different levels of opportunity cost Albania Belize Corn Вeets Corn Вeets Production Opportunity Cost e) Who has absolute advantage and comparative advantage for each item produced? f) Applying the idea behind specialization, who should focus on which product and why? (Calculate specialization for each item and country, call his point C: Specialization) Albania Belize Corn Вeets Corn Вeets Production with specialization g) Who should export or import corn and beets? Given that both economies have now agreed to trade, clearly label the point where each one specializes in one level of production for each item (call this point D: consumption with trade). Now let's focus on the terms of trade between each country, after completing the table above and the 2 countries permanent representatives discussing the 3 terms of trade, 4 options were presented: 1 beet = 6 units of corn Option 1: Option 2: Option 3: Option 4: & 1 corn = 0.4 units of beets 1.5 beet = 3.5 units of corn& 1 corn = 0.52 units of beets 1 beet = 4 units of corn 1 beet = 4 units of corn 1 corn = 0.4 units of beets 1 corn =0.10 units of beets & & h) Which option is the most acceptable for this situation? why