Answered: a. What is meant by the “gains from…

Business

Economics

a. What is meant by the “gains from trade”? b. Illustrate and label these gains on a figure

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 30RQ: What three factors will determine whether a nation has a higher or lower share of trade relative to...

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you have been hired by an International Organization to be consulted on various issues that the country Motherland faces. assume that Motherland is a small agricultural economy. 1. Assume that the biggest trading partner of Motherland is the United States. Unlike Motherland, the United States is a large industrial country. What type of trade model can best explain the trade between Motherland and the United States?
Suppose you examine the bilateral trade flows between Northern Ireland and the Republic of Ireland, England, Scotland and Wales. Which bilateral trade flows do you expect to be larger? Select one: O a. Between Northern Ireland and Wales Ob. Between Northern Ireland and the Republic of Ireland c. Between Northern Ireland and England Od. Between Northern Ireland and Scotland
Question Match the term to its correct definition. Column A 1. 2. 3. 4. 5. f 6. Asia-Pacific Economic Cooperation (APEC) European Union International Trade Agreements North American Free Trade Agreement (NAFTA) O a O b O c Od Protectionism United Nations (UN) What happens when a nation's currency depreciates? Its products become cheaper to other nations. Its trade decreases. Its trade increases. Its products become more expensive to other nations. Question 3 (1 point) Column B a. A trade agreement between the United States, Mexico, and Canada established in 1994 and renegotiated as the United States-Mexico-Canada agreement. b. A political and diplomatic organization established to promote economic and social cooperation between nations. c. Multinational agreements on trade conditions. d. A political and economic union of European states. e. An economics forum consisting of 21 countries in the Asia-Pacific region. f. The concept of protecting a country's domestic industries from foreign…
Imagine that it takes an average Australian miner 10 hours to mine a metric ton of coal and 20 hours to mine a metric ton of manganese. It takes the average South African miner 4 hours to mine a metric ton of coal and 12 hours to mine metric ton of manganese.Create a table to show how productive each miner is in a day. a. In what task does each miner have a comparative advantage? b. Which resource will each country import? How about export? c. Explain how markets provide the opportunity for the mining companies to specialize and earn gains from trade.
discuss relationship distance and Income with trade.\
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Generally, the losses due to free trade are ________, and the benefits are ________. a. concentrated within particular groups; spread thinly across the rest of the economy b. concentrated within particular groups; also concentrated within particular groups c. spread thinly across the rest of the economy; also spread thinly across the rest of the economy d. spread thinly across the rest of the economy; concentrated within particular groups
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Suppose in a given year, France can produce 100 tons of cheese or 500 oranges. Spain can produce 150 tons of cheese or 1000 oranges. Assume that both countries have the same amount of workers and that trade is allowed between the two countries. Which of the following is true? . O Spain should import both oranges and cheese from France. O France should import cheese from Spain and Spain should import oranges from France. O France should import oranges from Spain and Spain should import cheese from France. O France should import both oranges and cheese from Spain.
Consider the following data on two countries, A and B. A B Unskilled labor 72 million 540 million Skilled labor 60 million 300 million a. which country is skilled-labor abundant and why? b. which country is unskilled-labor abundant and why? c. now assume that product T is unskilled-labor intensive relative to product S, under free-trade equilibrium, which country will have a comparative advantage in the production of T?
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