According to the Heckscher - Ohlin model, OA. a country gains from trade if its exports have a high value added. OB. only the country with the more advanced technology gains from trade. OC. everyone gains from trade. OD. the scarce factor gains from trade and the abundant factor loses. OE. the gainers from trade could compensate the losers and still retain gains.

According to the Heckscher - Ohlin model, OA. a country gains from trade if its exports have a high value added. OB. only the country with the more advanced technology gains from trade. OC. everyone gains from trade. OD. the scarce factor gains from trade and the abundant factor loses. OE. the gainers from trade could compensate the losers and still retain gains.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign’s unit labor requirement in apple production is 120, while in banana production is 150. Graph Foreign’s PPF. Construct the world relative supply curve of banana. What will happen if ? Graph the relative demand curve along with the relative supply curve of banana. Assume: Demand for apples/ demand for bananas =half of price of bananas/ price of apples What is the equilibrium relative price of banana?
Note: The answer should be typed.
According to the theory of comparative advantage, a country exports goods when it can produce those goods countries. Select one: OA. at a higher opportunity cost OB. using more resources OC. at a lower opportunity cost OD. using fewer resources than other
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In Exhibit 1, the United States has a comparative advantage in producing: Group of answer choices potatoes. wheat. both. neither. PreviousNext
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?
A free-trade equilibrium exists in which United States exports Food and imports clothing from China. The goods are produced with two factors: capital and labour. The trade pattern is the one predicted by the H-O theory. Analyse the effects on the terms of trade and on the two countries’ welfare of the following:a. An import tariff on food imposed by China. b. An export subsidy on cloth by China.
Please answer for this question for option 4 to 7. All the necessary information is given in the images below.
Question 5 Which trade pattern is BEST explained by increasing returns? O Nicaragua exports bananas to the United States, and the United States exports airplanes to Nicaragua. Bangladesh exports clothing to the United States, and the United States exports airplanes to Bangladesh. Taiwan exports cars to the United States, and the United States exports airplanes to Taiwan. O Mexico exports beef to the United States, and the United States exports airplanes to Mexico.
If a country closes off to trade and notices that the number of firms in an industry doubles in size, what economic theory would help us explain this phenomenon? A. Stolper-Samuelson. B. Melitz. C. Ricardian. D. Cournot.
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