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%
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.
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 comp
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.
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
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?
1. Explain Comparative Advantage, specialization, and trade support by example. 2. Explain the invisible hand theorem supported by example.
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
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
Analyze the impact of trade restrictions on international trade.
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
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.
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
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
1. Which are the advantages and disadvantages of a country to have commercial relations with other countries?
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
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
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
See attached file for full problem description.
Economics Trade Questions. See attached file for full problem description.
Basic Trade Model. See attached file for full problem description. True/False Explain: According to the Basic Trade Model, if a country is "large" in world markets and experiences a technological improvement in the good that it exports, then the country's terms of trade must decline.
See attached file for full problem description. 2. Suppose that the preference of country A and country B differs, but that each is inflexible: country A consumes food and clothing in proportion 2:1 (at any prices), while country B always consumes food and clothing in equal proportions (1:1). The two countries have identical
As an international economist you have been asked to prepare a short speech which answers the following questions: 1. How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns? 2. The Heckscher-Ohlin theory demonstrates how trade affects the distribution of income withi
Explain why the U.S. would subsidize the short run cost of production for tobacco farmers in foreign countries. Do these practices guarantee the tobacco farmers a profit in the short run? Long run? Explain.
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.