International trade  Consider an H-0 economy in which there are two countries (US and France), two goods (wine and cheese) and two factors (capital and labor). Q1:Suppose a decrease in the price of cheese causes a decrease in the wage rate in the US economy. Which factor is used intensively in cheese production in France? Which HO theorem is used to get this answer? Explain.

Q: Suppose that the productivity per worker in the milk and cranberry juice industries of Southland and…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: 1 Suppose there are two countries, Home (H) and Foreign (F), and two goods, bread (b) and cheese…

A: (a) In the free trade world market equilibrium, the price of bread (Pb) is normalized to 1. We need…

Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…

A: A country should specialise in a particular good in which it has a competitive advantage.

Q: Which of the following statements is correct? Two countries cannot gain from specialization and…

A: True statement is “two countries cannot gain from specialization and trade if they have identical…

Q: omparative advantage and gains from trade Consider two neighboring island countries called…

A: The countries having low opportunity costs have comparative goods in international trade. The goods…

Q: international trade  Consider an H-0 economy in which there are two countries (US and France), two…

A: Answer Consider the US as a Home country and France as a Foreign country.   Given that the US is a…

Q: Macroland produces dishes and glassware. Before trade, a set of dishes sells for $100 and a set of…

A: When a country is open to trade , the country will trade at the world price.  When world price is…

Q: The following graph shows the domestic demand for and supply of oranges in Guatemala. The world…

A: Import and export: The aggregate amount of imports that an economy made from the rest of the world…

Q: The nation of Ectenia has 40 competitive apple orchards, which sell apples at the world price of $2…

A: The labor market explains how equilibrium wage rate and the equilibrium units of labor is determined…

Q: The country of "Econoland" can use its resources to produce either 500 tons of crab or 200 tons of…

A: Here, Two countries are given as Econoland and Arcadonia, which are producing two goods as crab and…

Q: If Honduras is open to international trade in oranges without any restrictions, it will import…

A: Domestic demand and supply refer to the quantity of goods and services that consumers and producers…

Q: QUESTION 33 Ricardo's theory of trade is based on (A: productivity of labor; B: doportunity cost; C:…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: - Denmark has a slight comparative advantage in television production because that activity is skill…

A: Intra-industry trade means a two-way trade in the provided sector, and on other hand the…

Q: SY 'I commodities: coconuts and passion fruits. The table below contains the amount of each…

A: Given that both countries have 180 hours of labor available we can calculate maximum production of…

Q: Consider 2 countries (the United States and the France) that use input such as labor to produce 2…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: 11. Which of the following statements is FALSE?  a) This model shows only half of the benefits from…

A: Consumer surplus is the difference amount between the consumer’s willing payment and actual payment…

Q: Refer to Table 1-1  Assume that Derryland and Whetonia each has 40 labor hours available and that…

A:

Q: Suppose an economist develops an international trade model based on the assumption that there are…

A: The Economist mostly considered only two countries and two goods for the better understanding of the…

Q: country, X has a comparative advantage in producing game console. Suppose recently, the Education…

A: Answer: Introduction: Comparative advantage: If a country has the least opportunity cost of…

Q: i live in cyprus . a) What are the comparative advantages (as a product or service) of your…

A: a)Passenger and cargo ships.These are produced by very few countries. b)Yes these are the main…

Q: Country X does not allow imports of clothing. In its equilibrium without trade, a sweater costs $20…

A: Consumer surplus is the area below the demand curve and above the market price till the quantity…

Q: International Trade: End of Chapter Problem In March 2002, then President George W. Bush put a…

A: Increase in PS ($ million) = area C = (1/2) x (448 - 363) x (7.9 + 7.4) = (1/2) x 85 x 15.3 = 650.25

Q: The United States imports televisions from Japan and Japan imports computer chips from the United…

A: Opportunity cost is the cost of producing one good in terms of other.  Comparative advantage is when…

Q: . Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of…

A: As given above Portugal has three times more labor resource than england.

Q: Q58 Suppose Spain is currently producing 90 units of wine and 10 units of cheese, but to produce 10…

A: Answer: To produce 10 more units of cheese Spain sacrifices 30 units of wine. So the opportunity…

Q: There are two countries Home and Foreign. Home has 1,200 units of labor available. It can produce…

A: Relative demand and supply:Relative demand and supply are two very important concepts for…

Q: Suppose the international relative price of gold is 10 bushels of wheat/bar of gold. If South Africa…

A: Given in the question productivity in two countries : Opportunity cost of wheat in South Africa =…

Q: Assume that Germany has 1200 units of labor available and it can produce two goods: apples and…

A: The Theory of Comparative-Advantage states that the economy with the least opportunity cost in…

Q: 1 Suppose there are two countries, Home (H) and Foreign (F), and two goods, bread (b) and cheese…

A: Free international trade : The absence of trade barriers , such as tariffs or import quotas ,…

Q: PROBLEM (6) (Optimal tariff setting without the small country assumption) US demand and supply for…

A: The demand for a product defines the desired quantity of that product that is required by the…

Q: Because of this comparative advantage, both countries benefit when they speciallze and trade with…

A: If we tabulate the given graph then we get    Lemons (millions of pounds) Coffee (millions of…