3. (a) Consider a standard Hecksher-Ohlin world, with the following endowment of production factors: Home Foreign 20 Labour 45 Capital 15 There are two goods: Computer (C), which are capital intensive, and T- shirts (T), which are labour intensive. 10 i. Based on the table above, explain what are the expected patterns of trade in this world. ii. Based on your answer above, explain, who in this example, stands to gain from free trade and who stands to lose. iii. Suppose for a moment that the relative price of computers is fixed at PC/P, and there is a sudden increase in the available labour in Home. Explain what will

3. (a) Consider a standard Hecksher-Ohlin world, with the following endowment of production factors: Home Foreign 20 Labour 45 Capital 15 There are two goods: Computer (C), which are capital intensive, and T- shirts (T), which are labour intensive. 10 i. Based on the table above, explain what are the expected patterns of trade in this world. ii. Based on your answer above, explain, who in this example, stands to gain from free trade and who stands to lose. iii. Suppose for a moment that the relative price of computers is fixed at PC/P, and there is a sudden increase in the available labour in Home. Explain what will

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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a. In the country of Estanbalu, there are plans to cease international trade. You are assigned asan economist to present to the Minister, the possible gains of engaging in free trade usingdiagrams where possible. b. Clearly explain and illustrate the gains from exchange and specialization. Answer only question b
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From an economic point of view, India and China are somewhat similar: Both are huge, low-wage countries, probably with similar patterns of comparative advantage, which until recently were relatively closed to international trade. China was the first to open up. Now that India is also opening up to world trade, how would you expect this to affect the welfare of China? Of the United States? (Hint: Think of adding a new economy identical to that of China to the world economy.) A. From China's perspective, the world relative supply curve will shift to the left. This shift will improve China's terms of trade. The U.S. purchases of Chinese exports will hurt the U.S. by decreasing the relative price of goods that the U.S. exports. B. From China's perspective, the world relative supply curve will shift to the right. This shift will worsen China's terms of trade. The U.S. purchase of Chinese exports will benefit the U.S. by increasing the relative price of goods that the U.S. exports. C. From…
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1. Explain a) what are the comparative or absolute advantages that a migrant can have on the basis of general trading skills or specific trading skills. b) what are the impacts of immigrants on international trade on high tech Industries. Specify a country and explain how the immigrants have impacted the mentioned country's national & international trade.
According to the resource-based view, there are economic gains from international trade because some firms in one nation generate exports that are valuable, unique, and hard to imitate that firms from other nations find it beneficial to import. O True O False
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You may need to refer to the textbook, or use some mathematical intuition, for this question. A country will be able to consume a combination of goods that is not attainable solely from domestic production if: a. the country avoids international trade. b. the country specialises in one product. c. the country’s domestic production value equals world relative value. d. the world terms of trade differ from the domestic relative costs. e. the world terms of trade equal the domestic relative costs.
Hello, I keep getting this question wrong on my practice hw but im not sure what im doing wrong.
1
Consider the specific factors model. There are two countries (Home and Foreign), two industries (Manufacturing and Agriculture) and three factors (labour, land, and capital.) Assume that home has comparative advantage in agriculture. Using a figure, show the impact of trade on earnings of labour, capital and land. Who will be in favour of trade and who will be against it?
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