Question

Take a look at the data in Table 32-1. Would Indian residents gain from the trade of Indian apps for U.S. tablets if the rate of exchange of tablet devices for digital apps happened to be 0.75 tablets per app?

Short answer

No, the Indian residents won't gain from the trade.

Step-by-step solution

Given Information

Assuming the terms of exchange change to $0.75$tablets per advanced application, it implies that the Indian occupants will get just$0.75$tablets for one computerized application. The Indian inhabitants won't acquire from the exchange at this conversion scale.

Explanation

From table 32-1, obviously, the U.S. will spend significant time in the production of tablet gadgets while India will have some expertise in computerized applications. If the U.S. applies every one of its assets to the production of tablets, it can create $225$tabs each hour. Then again, on the off chance that India utilizes every one of its assets in the production of computerized applications, it can deliver $100$applications each hour. At the point when the exchange opens, India will get $225$tablets in return of $100$computerized applications. That is, it should surrender one advanced application to get $2.25$tablets.