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In order to conjecture the circumstances in these two countries under autarky (when there is no trade), consider the following hypothetical scenario based on Ricardian model. Assume throughout that those two countries (Argentina and El Salvador) are the only two countries in the world, at least for purposes of trade. There are two goods: Hammers and Widgets. Consumers in both countries always spend half of their income on Hammers and half of their income on Widgets. The only factor of production is labour. Each Argentinian worker can produce 4 Hammers or 2 Widget per unit of time. Each El Salvadoran worker can produce 2 Hammers or 2 Widgets per unit of time. There are 50 workers in Argentina and 75 workers in El Salvador.
-Under free trade, which country produces which good(s)? How many units?
-Who gains from trade? Who loses from trade? State workers' stance towards free trade in each country, i.e., do they support or oppose free trade?
What are comparable real salaries? A job paid $57,000 in 2002. The CPI in 1960 was 29.6, compared to 179.9 in 2002. In 1960, what salary would be comparable to 2002's $57,000 in real terms?
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Let's discuss the topic of industry standard operational platforms, PC versus MAC, Linux versus Windows, and lastly Oracle versus SQL Server. It's common for many individuals to strongly prefer one over the other as it relates to their chosen plat..
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