1. In free trade a country will not trade if A. Autarky prices and free trade prices are the same. B. Autarky prices are larger than free trade prices. C. Autarky prices are smaller than free trade prices. D. The absolute value of autarky prices are negatively correlated with free trade prices. Explain and include diagram

1. In free trade a country will not trade if A. Autarky prices and free trade prices are the same. B. Autarky prices are larger than free trade prices. C. Autarky prices are smaller than free trade prices. D. The absolute value of autarky prices are negatively correlated with free trade prices. Explain and include diagram

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter17: International Trade

Section: Chapter Questions

Problem 1.2P

See similar textbooks

Similar questions

1. This country has a comparative advantage in a. Sb. Tc. both S and T d. need more information to determine 2. The production point with free trade is a point a b. point b c. point cd. point d 3. If point b is the autarky production, then the movement from point b to point c represents a. the static production gains from trade. b. total gains from free trade. c. the static consumption gains from trade. d. none of the above. 4. If point b is the autarky production, then the movement from point c to point d represents a. the static production gains from trade. b. the dynamic gains from trade. c. the static consumption gains from trade. d. tariff revenue. 5. When the community indifference curves are used as indicators of community welfare, the movement from CICO to CIC2 illustrates a. the one - time gains from the shift from autarky to trading at world prices. b. the total static gains from trade. c. an improvement in welfare. d. all of the above. 6. Dynamic gains from trade refer to a.…
1. Define absolute and comparative advantage and explain the difference between the two concepts. 2. Describe free and fair trade and how they are different. Provide a detailed answer with relevant examples .
4. ‘The world’s poorest countries cannot find anything to export. There is no resource that is abundant, certainly not capital or land, and in small poor nations such as Guatemala, not even labour is abundant.’ Discuss (assume Guatemala is the poor country and United states is the rich country)
Please no written by hand and no image 3. Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. What is the range of prices at which mutually beneficial trade can occur? Show your work clearly.
Create a diagram similar to Figure 1.4 in which demand in both countries is identical and trade arises because of differences in supply. Do another diagram in which supply is identical across nations but differences in demand lead to trade.
international trade Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production in 3, while in bananas production it is 2. There is now also another country, Foreign, with a labor force of 800. Foreign’s unit labor requirement in apple production is 5, while in bananas production it is 1. a) Show that how both Home and Foreign country gain from trade.
1. Expain in detail a) what are the comparative or absolute advantages that a migrant can have on the basis of general trading skills or specific trading skills in United State of America. b) What are the impacts of immigrants on international trade on high tech Industries. Explain how the immigrants have impacted the mentioned country's national & international trade in United States of America
Canada has negotiated free trade agreements with several countries. With reference to theories of trade, why would Canada, as a country, want to have freer trade with other countries. In other words, justify or outline, using theories, the benefits of trade. Please do fast ... ASAP fast
8 Home country has 1200 units of labor available while Foreign country has 800 units of labor. In Home the unit labor requirement in apple production is 3 while in banana production is 2. Foreign unit labor requirement in apple production is 5, while in banana production it is 1. a.) What is the opportunity cost of apples in terms of bananas of Home and Foreign.? b.) In the absence of trade, what would be the price of apples in terms of bananas? c) After opening trade what product is exported and imported by Home and Foreign.? d) Between what ratios would be a possible ratio for international trade (terms of trade)
4. Argentina and Brazil can produce cups and plates. Argentina can produce either 30 cups and 0 plates, or 0 cups and 10 plates. Brazil can produce 10 cups and 0 plates, or 0 cups and 30 plates. If they trade, how do they decide which country produces what? Explain. Show graph,if applicable.
Exercise: production per unit of labour: US: Wheat 300, Beef 100 Argentina: Wheat 20, Beef 20 a. Does either country have an absolute advantage in the production of wheat or beef? Explain b. What is the opportunity cost of wheat in each country? c. What is the opportunity cost of beef in each country? d. Analyze comparative advantage and opportunities for trade between the U.S. and Argentina.
4 A worker in Mexico takes 600 hours to produce a truck and 3 hours to produce a case of beer. A worker in Brazil takes 400 hours to produce a truck and 2 hours to produce a case of beer. a. Which country has comparative advantage in the production of beer? Explain. b. Will these countries trade trucks and beer? Why or why not?