a) Identify and explain using appropriate diagrams the 2 main categories of gains from trade. b) Some economist recommends that countries should specialize in trade. What are 3 main disadvantages and 3 advantages of doing so. c) Using the table below, Calculate the Net Barter term of trade for each year using 2010 as the base year. YEAR PRICE OF EXPORTS PRICE OF IMPORTS QUANTITY EXPORTED 2010 100 100 100 2011 95 120 110 2012 80 110 120 c. Using the information provided above calculate the Income Term of trade. What can be observed between the Net Barter Term of trade and Income term of trade calculated. d. Explain he differences between the Ohlin and Leontif theory on factor abundance.
a) Identify and explain using appropriate diagrams the 2 main categories of gains from trade. b) Some economist recommends that countries should specialize in trade. What are 3 main disadvantages and 3 advantages of doing so. c) Using the table below, Calculate the Net Barter term of trade for each year using 2010 as the base year. YEAR PRICE OF EXPORTS PRICE OF IMPORTS QUANTITY EXPORTED 2010 100 100 100 2011 95 120 110 2012 80 110 120 c. Using the information provided above calculate the Income Term of trade. What can be observed between the Net Barter Term of trade and Income term of trade calculated. d. Explain he differences between the Ohlin and Leontif theory on factor abundance.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 27CTQ: Suppose a country has an overall balance of trade so that exports of goods and services equal...
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a) Identify and explain using appropriate diagrams the 2 main categories of
b) Some economist recommends that countries should specialize in trade. What are 3 main disadvantages and 3 advantages of doing so.
c) Using the table below, Calculate the Net Barter term of trade for each year using 2010 as the base year.
| YEAR | PRICE OF EXPORTS | PRICE OF IMPORTS | QUANTITY EXPORTED |
| 2010 | 100 | 100 | 100 |
| 2011 | 95 | 120 | 110 |
| 2012 | 80 | 110 | 120 |
c. Using the information provided above calculate the Income Term of trade. What can be observed between the Net Barter Term of trade and Income term of trade calculated.
d. Explain he differences between the Ohlin and Leontif theory on factor abundance.
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