According to the Islam (2000) article "Comparative Advantage and Trade Balance in U.S. Agricultural Products", which of the following is true of the U.S.? OaUS. is the largest trading nation in the world OBUS. is the smalest trading nation in the world OCUS. has a persistent trade defot problem with the rest of the world OdUS has a persistent trade surplus problem with the rest of the world Oe. Both (a) and (c) are true
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- Suppose that in the United States, producing an aircraft takes 10,000 hours of labor and producing a shirttakes 2 hours of labor. In China, producing an aircrafttakes 40,000 hours of labor and producing a shirttakes 4 hours of labor. What will these nations trade?a. China will export aircraft, and the United Stateswill export shirts.b. China will export shirts, and the United States willexport aircraft.c. Both nations will export shirts.d. There are no gains from trade in this situation.With reference to Table 2 below, indicate in what commodity the U.S. and the Philippines have a comparative advantage? Table 2 COMMODITY U.S. Philippines Wheat (bushels/man-hour) 7 1 Rice (sacks/man-hour) 4 3In reference to tariffs, What is the reason that U.S. imposes tariffs? why the U.S. imposes tariffs on imports?
- nave a n ab je in bothi good because they both produce boots and shirts. 40- 38- 36- B. Neither country has an absolute advantage in both goods because the United States can produce more boots but Canada can produce more shirts. 34- 32- 30- 28- 26- 24- 22- 20- 18- 16- 14- 12- 10- 8- C. The United States has an absolute advantage in both goods because it can produce more boots and more shirts. PPFUS. D. Neither country has an absolute advantage in both goods because Canada can produce more boots but the United States can produce more shirts. O E. Canada has an absolute advantage in both goods because it can produce more boots and more shirts. US 6- Suppose initially that the United States is consuming 4 boots and 8 shirts and Canada is consuming 18 boots and 2 shirts, as indicated in the figure. Then, suppose the United States and Canada specialize by each only producing the good for which they have a comparative advantage and then trade. In particular, suppose the United States trades…President Trump via twitter on 11/29/2018: “Billions of Dollars are pouring into the coffers of the U.S.A. because of the Tariffs being charged to China, and there is a long way to go. If companies don’t want to pay Tariffs, build in the U.S.A. Otherwise, lets just make our Country richer than ever before!” Comment on whether the terms-of-trade argument against free trade necessarily applies under the presence of retaliatory tariffs applied by trade partners; Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.a. Suppose that the international relative price of cloth goes up. How will this affect the trade line and optimal level of consumption in the cloth exporting country? How would this impact the production in the exporting country? Show on the graph and explain (don’t worry about numbers). b. Is this change in the international relative price an improvement or deterioration in the terms of trade of the rest of the world? According to your graph, does the rest of the world gain or lose well-being? Explain!
- Trade protectionism a barrier to the recovery of global economies, warns ICS Feb 24, 2021 by Gavin van Marle Increasing trade barriers by governments around the world are hampering the global economy as it attempts to recover from the pandemic’s economic fallout, warned the International Chamber of Shipping today. According to the International Trade Centre, the COVID-19 pandemic has led governments to throw up “temporary trade measures that aim to restrict exports of vital medical supplies, and to liberalize imports of vital medical supplies as well as other essential products”. As of last week, some 98 countries have temporary export restrictions or outright bans in place. In contrast, 102 countries have liberalized their import restrictions. However, it is not just about COVID-19, according to a new ICS Protectionism in Maritime Economics report. It says: “Decades of progress toward open markets has begun to reverse in recent years, with damaging restrictions imposed as weapons…2.1 Suppose that the world price of oil is $60 per barrel and that the United States can buy all the oil it wants at this price. Suppose also that the demand and supply schedules for oil in the United States are as follows: Price ($ Per Barrel) 55 60 65 70 75 U.S. Quantity Demanded 26 24 22 20 18 U.S. Quantity Supplied 14 16 18 20 22 a. On graph paper, draw the supply and demand curves for the United States. b. With free trade in oil, what price will Americans pay for their oil? What quantity will Americans buy? How much of this will be supplied by American producers? HowThe graph below shows the trend of the terms of trade for the U.S. and China. Which would be inferred from the graph? Figure 6.9 Evolution of the Terms of Trade for the United States and China 125 120 - 115- 110 - China 105 100 95 90- 85 United Statoo 80 75 70 1980 1982 1984 1986 1088 1990 1092 1994 1096 1998 U A) China's growth may have hurt the U.S. terms of trade. 2000 2002 2004 2006 2008 2010 B) China's recent growth may have been export-biased. C) U.S. terms of trade have been hugely deteriorated over the past decasde. O D) U.S. exports have been competing with China's imporing sectors. 2012 2014
- Which of the following refers to a two-way trade in which a country both exports and imports the same or very similar products? a. Inter-industry trade b. Net trade c. Internal trade d. Intra-industry tradeInternational Trade-End of Chapter Problem Evaluate the following statement: is it true, false, or uncertain? "The United States can produce more tomatoes and avocados compared to Mexico, therefore there is no need for the United States to trade with Mexico for these goods." The statement is true. The United States has an absolute advantage in the production of both avocadoes and tomatoes. Due to this efficiency, it cannot benefit from trade with Mexico. The statement is false. Even though the United States has an absolute advantage in the production of both avocadoes and tomatoes, Mexico will still have a comparative advantage in one of these. Therefore, trade can be beneficial to both. O The statement is uncertain. There is not enough information on the opportunity cost of producing each good for both countries. Therefore we cannot pass a valid conclusion.assist and explain Which of the following statements best exemplifies the concept of relative advantage in international trade?A. USA can produce both wheat and textiles more efficiently than any other country.B. USA can produce wheat more efficiently than China, while China can produce textiles moreefficiently than USA.C. USA can produce more wheat than China, but China can produce more textiles than USA.D. USA and China have the same level of efficiency in producing wheat and textiles.