Problem
Suppose that France and Germany both have 100 units each of capital and labor, and that they share the same CRS technology with which they produce wine and cheese. However, tastes differ in the two countries: consumers in Germany have a strong preference for cheese, and consumers in France have a strong preference for wine. Will there be trade? What would you expect the pattern of trade to look like? Do you think we can still talk about comparative advantage in this case?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.