Suppose that there are two products: clothing and soda. Both Brazil and the United States produce ea

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Question Description

Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil can produce 100,000 units of clothing per year and 50,000 cans of soda. The United States can produce 65,000 units of clothing per year and 250,000 cans of soda. Assume that costs remain constant. For this example, assume that the production possibility frontier (PPF) is a straight line for each country because no other data points are available or provided. Include a PPF graph for each country in your paper. Chapter 5 of the Suranovic text is a good reference for this task.

Complete the following:

  • What would be the production possibility frontiers for Brazil and the United States?
  • Without trade, the United States produces AND CONSUMES 32,500 units of clothing and 125,000 cans of soda.
  • Without trade, Brazil produces AND CONSUMES 50,000 units of clothing and 25,000 cans of soda.
  • Denote these points on each COUNTRY’s production possibility frontier.
  • Using what you have learned and any independent research you may conduct, which product should each country specialize in, and why?

To assist in your thinking and discussion, additional questions to consider include:

  • What is the labor-intensive good?
  • What is the Marginal Rate of Transformation impact?
  • What is the labor-abundant country?
  • What is the capital-abundant country?
  • Could trade help reduce poverty in Brazil and other developing countries?

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

Our goal is to create a PPF for the US and Brazil based on the data. I noted in chat 1 and 2 examples of what the PPF should look like. These include the plotting of the primary data and the data without trade. The MRT is the opportunity cost of one good vs another and is the slope of the PPF. For the scenario the relevant theory is the Hecksher-Olin theory which I address in chat 2. You can also find this theory described in the text.

Tutor Answer

whiterose
School: Carnegie Mellon University

here is the completed assignment,..if you need anything else i will be readily available

PPF FOR USA AND BRAZIL
(PPF) Brazil, graph a.
clothes

0

50

100

soda

50

25

0

clothes(thousands) 100

50

0

25

50

soda (thousands)

(PPF) The USA, graph b.

clothes

0

32.5

65

soda

250

125

0

Clothes (thousands)
65
32.5

0

125

PPF Without trade for (USA), graph c.

250

soda (shillings)

Clothes
0
in
thousand
Soda in
125
thousand

Clothes

16.25

32.5

62.5

0

325

16.25

0

62.5

125 soda

PPF Without trade for (Brazil), graph d.
clothes 0

25

50

soda

12.5

0

25

Clothes (in thousand) 50

25

0

12.5

25

soda (in thousand)

Charts 1 and 2, as observed above, are to outline a straight-line production possibility frontier
when expenses stay consistent for Brazil and the US. We expect that Brazil can deliver 100
thousand units of attire and 50 thousand jars of soda for every year while the US can create 65
thousand units of clothes and 250 thousand jars of soda fo...

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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