Example The equations defining a model of two trading nations are given by Y, = C, + I} + X, = M, Y, = C, + Iţ + X, – M; C, = 0,8Y, + 200 M = 0,2Y,| C; = 0,9Y; + 100 M2 = 0.1Y; Express this system in matrix form and hence write Y, in terms of I'† and I4. Write down the multiplier for Y, due to changes in 1ţ and hence describe the effect on the national income of country 1 due to changes in the investment in country 2.

Example The equations defining a model of two trading nations are given by Y, = C, + I} + X, = M, Y, = C, + Iţ + X, – M; C, = 0,8Y, + 200 M = 0,2Y,| C; = 0,9Y; + 100 M2 = 0.1Y; Express this system in matrix form and hence write Y, in terms of I'† and I4. Write down the multiplier for Y, due to changes in 1ţ and hence describe the effect on the national income of country 1 due to changes in the investment in country 2.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 6SCQ: Table 33.15 shows how the average costs of production for semiconductors (the chips In computer...

See similar textbooks

Similar questions

3. The equations defining a model of two trading nations are given by Y, = C, + 1 + X, - M2 C, = 0.8Y, + 100 I = 300 Y, = C, + I* + X, – M, C, = 0.7Y, + 50 I* = 200 M, = 0.3Y, M, = 0.1Y, Express this system in matrix form and hence find the values of Y, and Y,. Calculate the balance of payments between these countries.
Pls solve it quickly
Note: Hand written solution is not allowed.
10:28 PM O Additional Activities Q1_Week 5- Effects of Globalization and Interconnectedness of People and Nations.pdf A. Explain the benefits of collaboration and cooperation in the activity; "wall climbing"; no tools nor harness were used; just the body to run over the wall. Relate it to the definition of a network. B. The learner locates on a map the workplaces of the OFWS in their cornmunity and writes a reflection naner n the effects of labor migration to tbeir community in relation to Glohalization
According to Filippov and Settles (2013), 4 different innovation-related internationalisation approaches can be distinguished when analysing the activities of Russian multinationals. Outline these 4 different approaches and expalin which approaches are most appropriate for what kind of conpanies. Illustrate gour answer with examples of Russian multinationals.
1-Analyze the following (2x2) matrices. Identify the countries having certain advantages. Moreover, specify the benefits of trade for both countries. A (2x2) matrix involves (2 countries exchanging 2 commodities or products) Matrix A Wheat (bushels/labor Cloth (yards/labor hour) hour) United States U.K. 3. (Numerical values reflect output per unit of input) a. Will trade occur??? Identify the country having the absolute advantage in wheat and the one having the absolute advantage in cloth. b. Identify the production possibility frontiers for both countries. c. Show me the gains of trade if we assume that the U.S. exchanges 6 units of wheat for 6 units of cloth.
Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram onto a sheet of paper and then add a foreign county as a third agent. Draw a rough sketch of the flows of imports, exports, and the payment for each on your diagram.
Please don't provide handwritten solution
4. Assume a two-country two-good two-input model. Let the countries in the model be Vietnam andMyanmar and the goods be shirts and natural gas. The two factors of production are labor and land.Further, Vietnam is labor-abundant and shirts production is labor-intensive. Suppose, in the absenceof trade, Vietnam operates at a point on its production-possibility curve where it produces andconsumes 20 units of shirts and 25 units of natural gas. Once it engages in free trade, the internationalprice of one unit of natural gas is .8 units of a shirt. In response to the opening of trade, Vietnammoves along its production-possibility curve to a new point where it produces 100 units of shirts and10 units of natural gas. Assume that with free trade, Vietnam chooses to consume 52 units of shirtsand chooses to trade all of its remaining surplus of shirts.a. Demonstrate the gains to trade for Vietnam.
Analyzing the following (2x2) matrices. Identify the countries having certain advantages. Specify the benefits of trade for both countries. This matrix involves 2 countries exchanging 2 commodities Wheat (Labor hours/Unit of Output ) Steel (Labor hours/Unit of Output) Germany 30 40 France 20 80 (Numerical values reflect labor hours per unit of output) Will trade occur? Identify the country having the advantage in wheat production and the one having the advantage in steel production. Identify the production possibility frontiers for both countries. along with the gains from trade.
6 Please make it explanatory
9. Answer ALL parts of this question. Consider the standard trade model with two goods and two factors, labour and capital. (a) Suppose that a country experiences an increase in its labour force. Assume thatgood X is labour intensive and good Y is capital intensive. How would theproduction possibility frontier change as a result? Illustrate this with a simplediagram. (b) What does it mean for the “terms of trade” to improve and why might this matter interms of welfare? (c) Consider two countries: Home and Foreign. Each country produces two goods,cloth (C) and food (F). Assume Home is an exporter of cloth. Now suppose Homeimposes a 20 percent tariff on the value of food imports. What will be the effect ofthe food tariff on the relative price of cloth and terms of trade? Illustrate youranswer with a relevant diagram. You may assume that Home is large enough toaffect the world market.