the country which has comparative advantage and the country which gains from international trade.

Question

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Answer 1

Question

Chapter 9, Problem 1SPPA

To determine

To find: the country which has comparative advantage and the country which gains from international trade.

Expert Solution & Answer

Explanation of Solution

The graph for Brazil's shoe market shows the lower price of shoes and high quantity as compared to the U.S. shoe market. Hence, Brazil has a comparative advantage in the manufacturing of shoes.

Brazil would export the shoes which would increase the shoe's supply in the U.S. market and consequently, the price of shoes in the U.S. market will decrease.

The production of shoes by the U.S. producers has a high opportunity cost and Brazil has a lower opportunity cost. Hence, Brazil would gain from export and the U.S would have gained from import.

Economics Concept Introduction

Trade:

Trade is an economic activity which includes the buying and selling of goods and services. Under the trade process, compensation is paid by buyer to the sellers in the form of currency.

Opportunity cost:

The opportunity cost is the cost of using the next best alternative. For example, harvesting with manual labor is replaced by harvesting with machinery. Hence, the opportunity cost of using machinery is the cost of manual labor forgone.

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Answer 2

Question

Chapter 9, Problem 1SPPA

To determine

To find: the country which has comparative advantage and the country which gains from international trade.

Expert Solution & Answer

Explanation of Solution

The graph for Brazil's shoe market shows the lower price of shoes and high quantity as compared to the U.S. shoe market. Hence, Brazil has a comparative advantage in the manufacturing of shoes.

Brazil would export the shoes which would increase the shoe's supply in the U.S. market and consequently, the price of shoes in the U.S. market will decrease.

The production of shoes by the U.S. producers has a high opportunity cost and Brazil has a lower opportunity cost. Hence, Brazil would gain from export and the U.S would have gained from import.

Economics Concept Introduction

Trade:

Trade is an economic activity which includes the buying and selling of goods and services. Under the trade process, compensation is paid by buyer to the sellers in the form of currency.

Opportunity cost:

The opportunity cost is the cost of using the next best alternative. For example, harvesting with manual labor is replaced by harvesting with machinery. Hence, the opportunity cost of using machinery is the cost of manual labor forgone.

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Answer 3

Question

Chapter 9, Problem 1SPPA

To determine

To find: the country which has comparative advantage and the country which gains from international trade.

Expert Solution & Answer

Explanation of Solution

The graph for Brazil's shoe market shows the lower price of shoes and high quantity as compared to the U.S. shoe market. Hence, Brazil has a comparative advantage in the manufacturing of shoes.

Brazil would export the shoes which would increase the shoe's supply in the U.S. market and consequently, the price of shoes in the U.S. market will decrease.

The production of shoes by the U.S. producers has a high opportunity cost and Brazil has a lower opportunity cost. Hence, Brazil would gain from export and the U.S would have gained from import.

Economics Concept Introduction

Trade:

Trade is an economic activity which includes the buying and selling of goods and services. Under the trade process, compensation is paid by buyer to the sellers in the form of currency.

Opportunity cost:

The opportunity cost is the cost of using the next best alternative. For example, harvesting with manual labor is replaced by harvesting with machinery. Hence, the opportunity cost of using machinery is the cost of manual labor forgone.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 1SPPA

To determine

To find: the country which has comparative advantage and the country which gains from international trade.

Expert Solution & Answer

Explanation of Solution

The graph for Brazil's shoe market shows the lower price of shoes and high quantity as compared to the U.S. shoe market. Hence, Brazil has a comparative advantage in the manufacturing of shoes.

Brazil would export the shoes which would increase the shoe's supply in the U.S. market and consequently, the price of shoes in the U.S. market will decrease.

The production of shoes by the U.S. producers has a high opportunity cost and Brazil has a lower opportunity cost. Hence, Brazil would gain from export and the U.S would have gained from import.

Economics Concept Introduction

Trade:

Trade is an economic activity which includes the buying and selling of goods and services. Under the trade process, compensation is paid by buyer to the sellers in the form of currency.

Opportunity cost:

The opportunity cost is the cost of using the next best alternative. For example, harvesting with manual labor is replaced by harvesting with machinery. Hence, the opportunity cost of using machinery is the cost of manual labor forgone.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1SPPA

To determine

To find: the country which has comparative advantage and the country which gains from international trade.

Expert Solution & Answer

Explanation of Solution

The graph for Brazil's shoe market shows the lower price of shoes and high quantity as compared to the U.S. shoe market. Hence, Brazil has a comparative advantage in the manufacturing of shoes.

Brazil would export the shoes which would increase the shoe's supply in the U.S. market and consequently, the price of shoes in the U.S. market will decrease.

The production of shoes by the U.S. producers has a high opportunity cost and Brazil has a lower opportunity cost. Hence, Brazil would gain from export and the U.S would have gained from import.

Economics Concept Introduction

Trade:

Trade is an economic activity which includes the buying and selling of goods and services. Under the trade process, compensation is paid by buyer to the sellers in the form of currency.

Opportunity cost:

The opportunity cost is the cost of using the next best alternative. For example, harvesting with manual labor is replaced by harvesting with machinery. Hence, the opportunity cost of using machinery is the cost of manual labor forgone.

Answer 6

Chapter 9, Problem 1SPPA

To determine

To find: the country which has comparative advantage and the country which gains from international trade.

Expert Solution & Answer

Explanation of Solution

The graph for Brazil's shoe market shows the lower price of shoes and high quantity as compared to the U.S. shoe market. Hence, Brazil has a comparative advantage in the manufacturing of shoes.

Brazil would export the shoes which would increase the shoe's supply in the U.S. market and consequently, the price of shoes in the U.S. market will decrease.

The production of shoes by the U.S. producers has a high opportunity cost and Brazil has a lower opportunity cost. Hence, Brazil would gain from export and the U.S would have gained from import.

Economics Concept Introduction

Trade:

Trade is an economic activity which includes the buying and selling of goods and services. Under the trade process, compensation is paid by buyer to the sellers in the form of currency.

Opportunity cost:

The opportunity cost is the cost of using the next best alternative. For example, harvesting with manual labor is replaced by harvesting with machinery. Hence, the opportunity cost of using machinery is the cost of manual labor forgone.

Answer 7

Chapter 9, Problem 1SPPA

To determine

To find: the country which has comparative advantage and the country which gains from international trade.

Answer 8

Expert Solution & Answer

Explanation of Solution

The graph for Brazil's shoe market shows the lower price of shoes and high quantity as compared to the U.S. shoe market. Hence, Brazil has a comparative advantage in the manufacturing of shoes.

Brazil would export the shoes which would increase the shoe's supply in the U.S. market and consequently, the price of shoes in the U.S. market will decrease.

The production of shoes by the U.S. producers has a high opportunity cost and Brazil has a lower opportunity cost. Hence, Brazil would gain from export and the U.S would have gained from import.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Trade:

Trade is an economic activity which includes the buying and selling of goods and services. Under the trade process, compensation is paid by buyer to the sellers in the form of currency.

Opportunity cost:

The opportunity cost is the cost of using the next best alternative. For example, harvesting with manual labor is replaced by harvesting with machinery. Hence, the opportunity cost of using machinery is the cost of manual labor forgone.

Answer 12

Ch. 9 - Prob. 1SPPA Ch. 9 - Prob. 2SPPA Ch. 9 - Prob. 3SPPA Ch. 9 - Prob. 4SPPA Ch. 9 - Prob. 5SPPA Ch. 9 - Prob. 6SPPA Ch. 9 - Prob. 7SPPA Ch. 9 - Prob. 8SPPA Ch. 9 - Prob. 9SPPA Ch. 9 - Prob. 10SPPA

the country which has comparative advantage and the country which gains from international trade.

To find: the country which has comparative advantage and the country which gains from international trade.

Explanation of Solution

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Chapter 9 Solutions