Why in the current modern trade, the integration of economic affairs from design to completion is an important priority for every Manufacturing Companies?
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Why in the current modern trade, the integration of economic affairs from design to completion is an important priority for every Manufacturing Companies?
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- If trade increases world GDP by 1 per year, what is the global impact of this increase over 10 years? How does this increase compare to the annual GDP of a country like Sri Lanka? Discuss. Hint To answer this question, here are steps you may want to consider. Go to the World Development Indicators (online) published by the World Bank. Find the current level of World GDP in constant international dollars. Also, find the GDP of Sri Lanka in constant international dollars. Once you have these two numbers, compute the amount the additional increase in global incomes due to trade and compare that number to Sri Lankas GDP.You just overheard your friend say the following: Poor countries like Malawi have no absolute advantages. They have poor soil, low investments in formal education and hence low-skill workers, no capital, and no natural resources to speak of. Because they have no advantage, they cannot benefit from trade. How would you respond?If opening up to free trade would benefit a nation, then why do nations not just eliminate their trade barriers, and not bother with international trade negotiations?
- How does international trade affect working conditions of low-income countries?How does comparative advantage lead to gains from trade?Suppose that companies in US can manufacture, using one year of labor, 10 units of machinery and 200 tons of corn. Companies in Mexico, using the same input of labor, can manufacture 6 units of machinery and 180 tons of corns. A-Which trade theory can best demonstrate the benefits of trade in this example and explain? B - Explain whether each county can specialize in production of one product or not and determine which product to specialize.
- 1. a. What is meant by the “gains from trade”?b. Illustrate and label these gains on a figureQuestion: what are some examples of successful expansion of global trade, countries are seeing, and using, trade as a weapon during and after recessions? please answer in paragraphs, thank you for your time!In some simple models of trade, a country may choose to specialize in the production of a single good. Which is not an argument against specializing in a single good in the real world? a. Unexpected events such as natural disasters or sudden changes in taste and demand could cripple a single industry. b. Specialization in a single good makes dumping easier and more effective. c. Curved production possibilities curves suggest increasing costs and diminishing returns. d. New technology or cheaper substitutes could replace the good.
- 10. We have focused on the case of trade involving only two countries. Suppose that thereare many countries capable of producing two goods, and that each country has onlyone factor of production, labor. What could we say about the pattern of productionand trade in this case? (Hint: Try constructing the world relative supply curve.)2. Gains from trade Consider two neighboring island countries called Felicidad and Bellissima. They each have 4 million labor hours available per month that they can use to produce rye, jeans, or a combination of both. The followlng table shows the amount of rye or jeans that can be produced using 1 hour of labor. Rye Jeans Country (Bushels per hour of labor) (Pairs per hour of labor) 20 Felicidad 16 Bellissima Initially, suppose Bellissima uses 1 million hours of labor per month to produce rye and 3 million hours per month to produce jeans, while Felicidad uses 3 million hours of labor per month to produce rye and 1 millon hours per month to produce jeans. Consequently, Felicidad produces 15 million bushels of rye and 20 million pairs of jeans, and Bellissima produces 8 million bushels of rye and 48 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and…Q32 A country that engages in no foreign trade is said to be in a situation of... a. Reciprocal absolute advantage. b. Absolute advantage. c. Comparative advantage. d. Economic empowerment. e. Autarky. Clear my choice
