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Comparative Advantage

comparative advantage instances

Would there ever be an instance in which a relatively small country could benefit from comparative advantage with a much larger country? What would that situation look like? What circumstances might tend to lend themselves to benefit smaller countries for trade with larger ones?

Comparative Advantage

Define the concept of comparative advantage. How can a country gain or lose its comparative advantage in the production of a good?

Absolute and Comparative Advantage

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

Comparative Advantange and Competivtive Advantage

Discuss the difference between comparative advantage and competitive advantage with reference to beer pricing. Corona is priced higher is the U.S. than Mexico, however American beer is priced higher in Mexico than in U.S.

Economics: Internation Business

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?

Offshoring of White Collar Services Jobs

What is offshoring of white-collar service jobs, and how does it relate to international trade? Why has it recently increased? Why do you think more than half of all the offshored jobs have gone to India? Give an example of how offshoring can eliminate some U.S. jobs while creating other U.S. jobs.

outsourcing of human resources

The outsourcing of human resources (ex, call centers in India) becomes an important part of U.S. firms in recent years. How would you explain this in relation to firm's profit maximization goal? US firms has been criticized for hiring cheap foreign labor and therefore contributing high unemployment rate in U.S. Does "made in U.S

Comparative advantage explanation, drawing production possibilities curves

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

Effective rates of protection

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%

Increasing Returns to Scale

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.

Resource Transfers

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 comp

Comparative and absolute advantage

The following table shows the productive capabilities of workers in Izodia and Oz. Use the table to answer the questions that follow. a)Which country has an absolute advantage in producing televisions? Computers? b)Which country has a comparative advantage in producing televisions? Computers?

Comparative Advantage

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

Economics in a Global Environment

I need help making the attached more original. I have to high of a similarity score. 1-2 pages Details: As a manager of a financial planning business you have two financial planners, Phil and Francis. In an hour, Phil can produce either one financial statement or answer 8 phone calls, while Francis can either produce 2 finan

Considering the Interests of Various Stakeholders

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

World Trade Organization & International Trade Example Question

Write 200-300 words arguing for or against unrestricted international trade. Some possible platforms on which to write are comparative advantage, gains from trade, World Trade Organization, and trade restrictions. Support your position with three specific reasons.

International Economics

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

Comparative and Absolute Advantage

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

Principles of Microeconomics

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

The manager of a financial planning business has two financial planners, Phil and Francis. In an hour, Phil can produce either one financial statement or answer 8 phone calls, while Francis can either produce 2 financial statements or answer 10 phone calls. Does either person have an absolute advantage in producing both products? Should these two planners be self-sufficient (each producing statements and answering phones) or specialize?

The manager of a financial planning business has two financial planners, Phil and Francis. In an hour, Phil can produce either one financial statement or answer 8 phone calls, while Francis can either produce 2 financial statements or answer 10 phone calls. Does either person have an absolute advantage in producing both products

Comparative Advantage & Income Distribution

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

Comparative Advantage, Specialization, and Trade

Pat Protectionist thinks the U.S. imports too many goods from low-wage countries like China. Pat will often point out products that have "made in China" labels on them and laments the fact that "most things sold in Wal*Mart are imported." Pat is a mechanical engineer and a manufacturers representative. Pat sells a variety of pro

Gains from Trade to the World as a Whole

An examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially) beneficial for each of the two trading partners since it allows for an expanded consumption choice for each. However, for the world as a whole the expansion of production of one product must involve a decrease in th