Need help with international tra Intra-Industry TradeConsider the model of intra-industry trade with increasing returns to scale and love ofvariety studied in class.Consider a single country in isolation. Firms in this country produce differentiated varieties.The demand for each variety is the following:q(p) = S * [ (1/n) - b*(p-Pm]]In this expression, p is the price of each variety. The average industry price is Pm. The marketsize is S = 100. The responsiveness of consumers' demand for this variety to price deviationsfrom the average market price is given by a constant, b = 1.Each firm's average total cost is given by ATC(q) = F/q + c where marginal cost is constantat c = 10 and fixed cost is F = 20.a. Find an expression for each firm's average cost as a function of the number of firms, n.Graph this with cost on the vertical axis and the number of firms on the horizontal axis.b. Write the expression for a firm's price as a function of the number of firms. Graph this theprice on the vertical axis and the number of firms on the horizontal axis.c. Solve for the equilibrium number of firms, n.=400, for instance, due to trade, thed. True or false? If the market size quadruples to Snumber of firms will also quadruple. (Explain your answer.)

Determine the quantity at which each firm is willing to sell at the same price.It also explains that…

Answered: Intra-Industry Trade Consider the model…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question: What are the explanations and advantages of free trade that the new theories of international trade give? The international monopoly of the drone market is held by an American firm. Its average production cost is given by the following function: CME = (5000-3Q) / 10 China is considering setting up a firm with the average cost function: CMC = (3500 - 3Q) / 10 The international request is written: DM = 1000 - p and the only Chinese request is written: DC = 500– 0.5 p A. Characterize the equilibrium in a monopoly situation when the American firm is alone in the world market. B. Describe the equilibrium in the event that China sets up a drone production industry (assume that Chinese production remains modest - close to 0 - in the event of entry). C. What policy would improve the balance for China and for the world as a whole, if the United States were excluded? Characterize this balance. Explain and comment. D. Represent all the equilibrium situations on a single graph.
You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia. What is the difference in how business is conducted in the entry country (Australia) versus Canada? Special attention should be given to ethics, formality, and communication styles including negotiations
Q1: Suppose a new industry invokes the infant industry argument to request a tariff. Assume this is granted but after five years, the benefits fail to outweigh the costs. Using diagrams discuss the following: a) Using a diagram, discuss the conditions that led this industry to ask for assistance (domestic supply and price, world price). b) Modify the diagram in (a) to explain the immediate effects of the tariff (market and welfare). c) Modify the diagram in (b) to discuss the effects of a rise in world price in the future (market and welfare). d) Explain how you would modify the diagram in (c) to depict the case where the actual net effect after five years (market & welfare effects) is worse than expected. No need for a Diagram here.
Which of the following is true of intra-industry trade? Multiple Choice Intra-industry trade is mostly based on the differences stressed in the Heckscher-Ohlin trade theory. Intra-Industry trade is usually discouraged by the government. Intra-industry trade is said to occur when the United States exports Ford automobiles and imports petroleum. Intra-Industry trade is said to occur when the United States exports Ford automobiles and Imports Honda automobiles.
In international trade, political risks arise when the provider is unable to meet the contractual obligations or when there are disputes over the conditions and terms stated in the contract. True False If your answer is false, give the good answer: course: export of services
6. Suppose Home is a small country and has a monopolist with Marginal cost 2q. The world price is pw40. The Home inverse demand function is P = 150 - Q. (a) Find the Domestic Free Trade equilibrium outcome. P = (domestic) q =_ Imports
Suppose the cost of producing product X (all in perfectly competitive markets) in 3 small countries (A, B, and C) each with different tariff structures that compose the world is as follows (using a common currency): Country A B C Cost 50 40 30 =========== A union (FTA) between country A and country C while keeping a 50 percent tariff on imports of X Select one: worsens country A’s welfare allows country A to import product X from the world’s cheapest source improves country A’s welfare diverts what would have been imported of product X from country B --------------------------------------------- =========== If A imposes a 100 percent tariff on imports of product X: Select one: the price of X in country A will rise the price of X in country B will rise country A will not import product X country A will import from country C
None
You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia. Create an analysis on the entry country (Australia) based on the following; Are there any trade restrictions? This includes embargoes, quotas, import taxes, tariffs, licensing, and customs duties.Does the entry country require countertrade? Do they receive foreign aid?
Identify four major crude oil traders in the world and the percentage of the market share.
Two countries-A and B. Downward-sloping market demand in both. Firm Marginal Cost is upward sloping. The market price in A is higher than in B. Claim: the Marginal Cost in A is higher than in B. Agree, Disagree or It Depends? Explain your reasoning. Keep your responses short and precise. Under 250 words is a good rule of thumb.
explain the strategic trade theory and with an aid of an example of industry of choice. motivate why the government should implement this theory

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