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As a result of NAFTA what is Hecksher-Ohlin model concerning on labor intensive and capital intensive ?
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- explain advantages and disadvantages of the estimating opportunity cost of labor“Factor prices determine factor proportions used in production of goods in the H-O model.”Explain with the help of a graph.Give me correct and accurate answer otherwise i give downvote 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.
- Explain how omitted variable bias can be summarized mathematically by using a formula?Suggest assumptions of the Production Possibility FrontierElsa and Anna are two students each considering whether to pursue a college education before entering the job market. For each worker, an education level of E = 1 indicates that she has completed college and earned a degree, while E = 0 indicates she has not. Elsa can generate V E = 36 worth of output per hour while Anna can only produce V A = 12 per Obtaining a degree is costly, and the students must pay for their educations by taking out student loans that will be repaid during their working years. Elsa is a naturally capable student so the degree costs her the equivalent of CE = 18 per hour in future wages, whereas Anna struggles with her studies and must pay CA = 27 per hour. Note that their education levels do not impact their productivity. Hans is an employer who cannot observe the workers’ innate abilities but can observe their education levels. The labor market is competitive, so that Hans must always offer a wage equal to his reservation price, and thus makes zero profit. a)…
- A domestic economy can produce wine or bread using labor with the following technology: Yw = 21 Y6 = 0.51 Preferences in this economy are Cobb-Douglas and given by: u (Cu, Cb) = 0.2 log cu + 0.8 log cs Total labor endowment in this economy is 1 million workers that are perfectly mobile across sectors. A foreign economy is instead characterized with the following technology: Y = 31 %3D The foreign economy has the same preferences as the domestic, but a labor supply of 10million workers. What is the equilibrium competitive wage rate in units of bread for the home economy under free-trade? 3/2 2 2/3 1/2Elsa and Anna are two students each considering whether to pursue a college education before entering the job market. For each worker, an education level of E = 1 indicates that she has completed college and earned a degree, while E = 0 indicates she has not. Elsa can generate V E = 36 worth of output per hour while Anna can only produce V A = 12 per Obtaining a degree is costly, and the students must pay for their educations by taking out student loans that will be repaid during their working years. Elsa is a naturally capable student so the degree costs her the equivalent of CE = 18 per hour in future wages, whereas Anna struggles with her studies and must pay CA = 27 per hour. Note that their education levels do not impact their productivity. Hans is an employer who cannot observe the workers’ innate abilities but can observe their education levels. The labor market is competitive, so that Hans must always offer a wage equal to his reservation price, and thus makes zero profit. a)…Suppose a fisherman owns a fish farm that has a boat and only one worker (the fisherman himself)Currentlyfish are captured and sold in the every dayEventually the to an additional worker so that he can dedicate all his time to capturing the fish, and the can sell the fish per day With the additional worker, the total of the farm is 200 The marginal returns of the second worker is The fisherman now decides to add one more workerWith the two workers capturing and the one worker , output the fish 300 dayThe marginal returns of the third worker per day
- Consider a world composed of two countries, Home (H) and Foreign (F). Individuals living in each countryi = H, F have preferences over two goods x and y.In each country there is only one factor of production, labour, which is perfectly mobile between industries butimmobile between countries. The total labour endowment at Home is LH = 10 and the total labour endowmentin Foreign is LF = 10.The marginal product of labour in each industry is constant. At Home, one worker can produce 2 units ofgood x or 1 unit of good y per unit of time; at Foreign one worker can produce 1 unit of good x or 2 units of goody per unit of time.Assume that consumers in Home and Foreign always consume goods x and y in the same quantity regardlessof their prices. That is, Cxi = Cyi, i = H, F F. Suppose that the equilibrium price of good x (keeping the price of good y as 1) is equal to 1. Determine the optimal production and consumption both at Home and Foreign when they open up to trade. Depict this in graph.in relations to the production possoblities frontier, ineffiecency occure whenZagreb International Review of Economics & Business, Vol. 10, No. 1, pp. 33-66, 2007© 2007 Economics Faculty ZagrebAll rights reserved. Printed in CroatiaISSN 1331-5609; UDC: 33+65Outsourcing to China: Opportunities, Threats, and StrategicFitIlan Alon*Theodore T. Herbert**J. Mark Munoz***Abstract: China is a prominent outsourcing destination in Asia. International labour outsourcing,specially in the IT sector, has grown rapidly in recent years. This article defines outsourcingthrough an extensive review of the literature and discusses the opportunities and challengesfor outsourcing to China. Seeking strategic âfitâ among the disparate elements that influencethe firmâs outsourcing decision is recommended. The authors explore the IT and businesslandscapes in China and propose strategies for outsourcing success there.Keywords: labour outsourcing, China, information technology, international business,…
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