international exchange rate is 6 kg of rice in Exchange for 6 kg of beef, then Vietnam will save the 2 kg beef because every hour in Vietnam produced only 4kg beef and the domestic exchange rate are: rice, 6 = 4 beef. Similarly, 6 rice that Taiwan received from Vietnam the equivalent of 6 hours of labor in Taiwan and can create 30kg such beef to Taiwan are conducive to benefit 30-6 = 24kg. domestic exchange rate is 2 rice = 5 beef. International exchange rate shall be:6/4 > (rice)/(beef) = > international exchange ratio 1/5
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