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Business, 27.07.2021 16:20 sl1010

In this example, assume that both trade and production factors are internationally mobile. Using domestic labor, the labor cost per silicon chip is $.10 in Japan and $.20 in the United States. Using domestic capital, the capital cost per chip is $.10 in Japan and $.05 in the United States. Chip transportation in either direction is $.10. Japanese labor is willing to work in the United States for $.15 per chip including the workers' transport cost. U. S. capital will go to Japan at a cost of $.08 per chip including transaction costs. Which silicon chips will the United States buy

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