reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells

house paint to the Czech Republic. The Czech Republic sells alarm clocks to Germany. Would you expect

this pattern of trade to increase or decrease jobs and wages in the paint industry in Germany? The alarm

clock industry in Germany? The paint industry in Czech Republic? The alarm clock industry in Czech

Republic? What has to happen for there to be no increase in total unemployment in both countries?

Problems

55. Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply (s)

for cameras in Thailand and Japan is described by the following functions:

P is the price measured in a common currency used in both countries, such as the Thai Baht.

a. Compute the equilibrium price (P) and quantities (Q) in each country without trade.

b. Now assume that free trade occurs. The free-trade price goes to 56.36 Baht. Who exports and imports
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