Assignment- 1 (15 Marks)
Assumptions for IndiaAssumptions for China600 units of resources available1. 600 units of resources available10 units to produce a ton of Tea2. 20 units to produce a ton of Tea15 units to produce a ton of Cotton3. 8 units to produce a ton of CottonUses half of the total resources per product when there is no international trade4.Uses half of the total resources per product when there is no international trade
Q1. Calculate production possibilities for both the countries when there is no international business.
Q2. Calculate production possibilities when there is international business available by using Absolute Cost Advantage Theory.
Q3. Draw a diagram and show production quantities for both the Q1 & Q2 situations.
Assignment- 2 (15 Marks)
Assumptions for IndiaAssumptions for Bangladesh1000 units of resources available1. 1000 units of resources available20 units to produce a ton of Sugar2. 30 units to produce a ton of Sugar25 units to produce a ton of Rice3. 30 units to produce a ton of RiceUses half of the total resources per product when there is no international trade4.Uses half of the total resources per product when there is no international trade
Q1. Calculate production possibilities for both the countries when there is no international business.
Q2. Calculate production possibilities when there is international business available by using Comparative Cost Advantage theory and show with a diagram.
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