Question

Question 2 Rag question Country A limits taxes another nations exports to Country A, This is an example of ap o a esport subsidy o b protective tartt t. import quota. d. vountary export restriction O Cuestion3 Flag question In Germany, one worker can produce ether one oxkoo tlock or one beer mug h Tawan ore worker can produce ether twD cuckoo clocks or three beer the comparative dvaritage in each good a. Tewan in both goods Destinn O ype here to search e圈曲

Answer 1

Answer.)

Q2.) b.) Protective tariff

Q3.) b.) Germany in Clocks and Taiwan in mugs.

Opportunity cost of a beer mug in Germany is 1 clock and same in Taiwan is 0.66 clocks. Further, Opportunity cost of a clock in Germany is 1 beer mug and same in Taiwan is 1.5 beer mug. Therefore, Germany has competitive advantage in clocks and Taiwan in Beer.