3. assume a world with two nations, japan and the united states. assume there are only two goods, computers and cars, and japan has the comparative advantage in computers. assume a linear production possibilities schedule (pps) for both goods. graphically, draw the pps for both the united states and japan. show the terms of trade. show where the united states and japan would produce these two goods after trade has begun. finally show where the countries might consume after trade, showing that the interactions between global institutions is good for people
