Compared to Country Y, Country X has a comparative advantage in producing computers. Country Y has a comparative advantage over Country X in producing automobiles. How can the two countries BEST take advantage of this situation?
Country X and Country Y can impose barriers to trade between themselves.

Country X and Country Y can specialize their production and trade with each other.

County Y can stop producing goods and import all of its products from Country X.

Country X can stop producing goods and import all of its products from Country Y.

Suppose the value of the Japanese yen appreciates relative to the US dollar. Who would this benefit? Select all that apply.
Japanese tourists visiting the United States

US tourists visiting Japan

Japanese exporters of goods to the United States

US importers of goods from Japan

Japanese importers of goods from the United States

Look at the exchange rate table. Then answer the question that follows.

Ethan is an American who buys and sells goods in the international market. He recently bought goods that cost 10,000 yen from a company in Japan. How much money did he spend in US dollars?$100

$1,000

$10,000

$100,000

When a country or organization is able to produce a certain good or service at a lower opportunity cost than competitors, such country organization is said to have a comparative advantage on such product.

1.)

Hence, the best way to both countries can take advantage of the situation is for countries X and Y to specialize in that good in which it has comparative advantage, then trade with one another.

2.)

Since the Japanese yen has appreciated over the dollar, then, the beneficiaries would be ;

Japanese importers of goods from the United States
Japanese tourists visiting the United States

These is because they could get more with less.

3.)

Total cost of goods = 10,000 yen

100 yen = $1

10000 yen = x

Cross multiply

100x = 10000

x = 10000 ÷ 100

x = 100

Hence, Ethan has spent $100

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