Describe how comparative advantage is relevant for trade and how even when a country has an absolute advantage in both goods it can still gain from trade.
Plot the PPC of a nation given by the following data. (attached) a. Calculate the marginal opportunity cost of each combination. b. What is the opportunity cost of combination C? c. Suppose a second nation has the following data. Plot the PPC, and then determine which nation has the comparative advantage in which activity.
Story can also be found on http://wdfw.wa.gov/factshts/terns.htm Move the Terns Environmental groups have tried for two years to breach four hydroelectric dams on the Columbia River's main tributary, the Snake River, in an effort to give fish easier access to spawning grounds. But both Republican and Democratic members o
Define and explain the difference between absolute advantage and comparative advantage. What is the significance of each in international trade processes?
Please provide a detailed explanation on the following questions. Include a diagram and at least 200 words. 1. How does trade affect the production possibilities frontier? 2. Give an argument for or against trade. Explain your reasons. 3. What should government do to support your argument?
There are five exercises in this solution set. The problem set is attached. For convenience sake, I am providing the question in Exercise 1: Use the following production possibility tables for war goods and civilian goods. Production Alternatives Type of Production A B C D E
PLease help! Describe how international trade affects our economy. How the concept of comparative advantage was relevant to the trade negotiations? You may use the following scenarios in your discussions. Imagine that you belong to one of the following Island. Crusoe Island · Abundant population ·
1. (Absolute and Comparative Advantage) You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom: Labor Hours Required to Produce One Unit United Kingdom United States Wheat 2 1 Cloth 6 5 a. What is the opportunity of producing a unit of wheat
Week 4: Discussion Questions 1. How do changes in interest rates, inflation, productivity, and income affect exchange rates? 2. Is a strong U.S. dollar always good for the U.S. economy? Why or why not? 3. What parties benefit from the imposition of tariffs and quotas? What parties lose from the imposition of tariffs
1. Two individuals are having a picnic. Jane brings 8 litres of soft drinks and 2 sandwiches. Bob, on the other hand, has 2 litres of soft drinks and 4 sandwiches. With these endowments, Jane's marginal rate of substitution (MRS) of soft drinks for sandwiches is 3, and Bob's MRS is equal to 1. Draw an Edgeworth box diagram t
Define the concept of comparative advantage. How can a country gain or lose its comparative advantage in the production of a good?
Please see the attached file. 1. (25 points) Assume Nebraska and Virginia each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states: Nebraska Virginia Wheat 9
A. Construct a quantitative example to illustrate the principle of comparative advantage. b. What are dynamic effects of free trade and why might they be important?
Suppose that, with a given unit of labour, India can produce 40 basketball hoops or 60 basketballs and Nepal can produce 10 basketball hoops or 30 basketballs. This scenario is illustrated below. output hoops (H) balls (B) India 40 60 Nepal 10 30 a.) Explain absolute and comparative advantage for India and Nepal
1. Suppose the free trade market price of a car is $10,000. It contains $5000 worth of steel. The importing country imposes 25% tariff on car imports. a. Calculate the effective rate of protection if there is no duty on steel imports. b. Calculate the effective rate of protection if the importing country imposes a 20%
International Trade and Exchange Rates: The size of the labor force in a community is 1,000, and 850 of these folks are gainfully employed.
1. The size of the labor force in a community is 1,000, and 850 of these folks are gainfully employed. In this community, 50 people over the age of 16 do not have a job, and are not looking for work. In addition, 80 people in the community are under the age of 16. The unemployment rate is: 2. Suppose nominal GDP in 2005 was $
Here is the question: Explan the increasing returns to scale as a basis for international trade. Be sure that you define the relevant concepts, describe important features of such trade, and contrast these features with those of trade due to other causes.
In a global economy, if domestic firms are unable to reduce labor costs in reaction to foreign competition, then most likely
1) In a global economy, if domestic firms are unable to reduce labor costs in reaction to foreign competition, then most likely: a. employers will be forced to find other ways to cut costs and remain competitive. b. the profits earned by manufacturing firms will be reduced c. the prices charged for manufactured products will
In order to maximize society's happiness, we must free up resources which are in lower valued uses and allow them to go to higher valued uses. 1)Explain and elaborate on this concept. 2)How can this concept be applied to the activities of profit making companies and profit loosing companies or to the revenue and costs compon
I have some exam prep multiple choice questions (we are not going over them until 3 days before my mid term!). Please see attached file.
International Business - Consider the following two country-two goods world, with a single input, labor
Consider the following two country-two goods world, with a single input, labor: Daily production per worker Commodity Portugal England Wine (barrels) 2 OR 1 Cloth (bolts) 4 OR 3 a) Does either country have absolute and/or comparative advanta
In the light of the Ricardian model, how might you evaluate the claim by developing countries that they are at a disadvantage in trade with powerful industrialized countries?
Here is the problem. When you give me the solutions for these problems, please make them as detail as possible you can. 1. Suppose that in England 5 man-hours of labor are required to produce each cask of wine and 5 man-hours are required to produce each bolt of cloth, whereas in Portugal 1 man-hour of labor is required for
For multinational corporations, friction costs arise where practices of the firm are seen by the public as exploitative or unethical. These actions lead to public criticism and loss in the value of the company's goodwill and may translate into measurable sales losses. There is growing evidence that a corporation's image can
Consider the economy of United States and Mexico. There are two goods, computer chips and tequila, and two factors of production, skilled and unskilled workers. Computer chips are relatively intensive in skilled labor, and there are no technological differences between both countries. Initially there is no trade. See attach
Assume the following output and labor hours for Russia and Germany in producing Wheat and Cloths Russia Wheat 3 Cloths 6 Labor Hours 100 Germany Wheat 2 Cloths 2 Labor Hours 50 a. Which country has the comparative advantage in wheat? b. Which country has the comparative advantage in cloth? c. Which country has the absol
Movie theaters often offer reduced rates for children under 10. This suggests that demand for adult admission is ______ than demand for children's admission. a. more elastic. b. less elastic. c. more variable. d. lower. When an increase in the scale of production leads to higher average costs, th
It's the spring of 2002. You are an economist on President Bush's council of economic advisors. Congress is considering legislation, called the "2002 Farm Bill," that would increase subsidies to US farmers. The president has asked you to explain how the proposed legislation will affect world market prices and how the proposed le
Economics Trade Questions. See attached file for full problem description.
What are the pros and cons of a company that competes in a global environment? How do you think this has affected the U. S. economy and the global economy? Consider these issues from the perspective of the company, their competitors, their employees, their shareholders and their consumers.