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Suppose the two countries can trade shares in the ownership of their perspective assets. Further ass

Chako

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Suppose the two countries can trade shares in the ownership of their perspective assets. Further ass

Suppose the two countries can trade shares in the ownership of their perspective assets. Further assume that a Home owner of a 25 percent share in Foreign land. He will receive 25 percent share in Foreign land and thus receives 25 percent of the annual Foreign kiwi fruit harvest. Further assume that also that a Foreign owner of a 25 percent share in Home land is permitted. In this case, a Foreigner is entitled to 25 percent of the Home harvest. Calculate the expected value of kiwi fruit for each investor.

Textbook

International Economics: Theory and Policy

Edition: 10^th

Author: Krugman

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Chako Author

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9 years ago

Good answer, thank you

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machukian

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9 years ago

Thanks for the feedback, I'm sure others will appreciate it too

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