Trade and Technology: The Ricardian Model - Faculty
Trade and Technology: The Ricardian Model - Faculty
Trade and Technology: The Ricardian Model - Faculty
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<strong>Trade</strong>: Relative wages (cont.)<br />
46 <br />
a LC /a LW = 1/2 < a * LC /a* LW<br />
International Commercial Policy<br />
<strong>The</strong> <strong>Ricardian</strong> <strong>Model</strong><br />
Unit labor requirements for domestic <strong>and</strong> foreign<br />
countries<br />
Cheese Wine<br />
Domestic a LC = 1 hour/kg a LW = 2 hours/L<br />
Foreign a * LC = 6 hours/kg a* LW = 3 hours/L<br />
= 2
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