3. Explain what the term "balance of trade" refers to from a macroeconomic perspective and include a brief 4. Briefly contrast a nation's level of trade with its balance of trade and identify three factors that strongly influence a nation's level of trade.

Q: 3. Find Current Account Balance from the following: Items (i) Export of goods (ii) Export of…

A: Current account is the account which can calculate the value of exports and imports of goods and…

Q: Jsing the specific factors theory and the following table on relative factor apundance, what is the…

A: The Specific factor Theory is used to evaluate the real-world and practical phenomenon that certain…

Q: Consider the following scenario: Country A Country B Soybeans 8 Textiles 4 Suppose that wa=$1000 and…

A: Answer: Let us first find the opportunity cost of Soybeans and Textiles for country A: Opportunity…

Q: 45) Assume that Outland specialises in producing skateboards and Inland specialises in producing…

A: International trade allows nations to interact with one another via import and export of goods and…

Q: What will happen to a country that fixes the price of foreign exchange below equilibrium?

A: Fixed exchange rate is a government policy in which exchange rate is fixed at a given level that…

Q: a) Briefly explain what is meant by Olson's theory of interest groups. (3-6 sentences expected.) b)…

A: 1. Mancur Olson (1971) has tested a by and largely held view that groups of people having regular…

Q: should imports to the united states be curtailed by, say 20 perent to eliminate our trade deficit?

A: Balance of trade is a declaration that catches the nation’s import and export of products with the…

Q: 5. Which of the following statements is (are) correct? (x) The openness ratio is measured by a…

A: Disclaimer“Since you have asked multiple questions, we will solve the first question for you. If you…

Q: ention two possible situations when dealing with exports and imports.

A: The process that involves the transfer of goods from one person to another being done in exchange…

Q: 6. Identify where each of the following terms should be placed in the diagram below. Imports,…

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

Q: Consider a nation in which the volume of goods and services is growing by 5 percent per year.   a.…

A: An increase in the nation's volume of goods and services is termed as economic growth. Gross…

Q: Has the globalisation of international trade and banking always been beneficial for the economies of…

A: The globalisation refers to the free flow of goods and services, capital and human resources across…

Q: 1. – Using the following information, determine each one of the theoretical Exchange Rates (E.R.)…

A: The purchasing power parity (PPP) holds when the power of purchase of one unit of currency is…

Q: Discuss the ways that running a trade deficit could result in either a healthy economy or a weaker…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What are some of the pros and cons of expansions and contractions in consumption in a country when…

A: Countries that are more open to foreign commerce tend to grow quicker, innovate, enhance…

Q: Trade theories suggest that both countries gain from trade. In a 2-country, 2-good model, we assume…

A: Absolute advantage alludes to the limit of any monetary specialist, either an individual or a…

Q: What do you mean by balance of trade?

A: There must always be a systematic record of all the transactions which are taking place between the…

Q: 2 a) Outline and explain what three (3) factors have contributed to the growth of Globalization in…

A: For globalization to convey to its maximum capacity, all legislatures should treat more in a serious…

Q: Consider the countries Peru and Uruguay. They each have 4 million labor hours available per week…

A: Here Peru has comparative advantage in production of soybeans ie Peru = 12/48 = 0.25 sandals forgone…

Q: 18) Which of the following is a true statement about the European Union? A) It is working toward the…

A: European union refers to the alliance of various countries of Europe continent. The member countries…

Q: 1-according to neoclassical trade policY governments in developing countries often impose tariffs…

A: Tariff: Tariff is a kind of tax imposed by a domestic government on commodities that it imports from…

Q: A The left graph depicts the domestic market for a small country's product, and the right graph…

A: Sorry , as per our policy we are allowed to answer only first 3 sub parts of a question , kindly…

Q: Question: It is sometimes argued that, if a government protects a domestic industry (for example,…

A: They effectively increase the prices of those essences, supplying an edge to domestic businesses in…

Q: 1. Define GATT and discuss the importance of the successive rounds. Do you think that GATT was…

A: GATT: GATT or General agreement on trade and tariff is a legal multilateral agreement signed on 30…

Q: 1. In the following figure, which point is the production point, which point is the consumption…

A: The slope of PPF equals the relative price or opportunity cost of the good on the horizontal axis,…

Q: Question 25 The following graph shows the exports (blue line) and imports (red line) for Japan. For…

A: In the given graph, the red line shows the imports of goods and services and the blue line shows the…

Q: Both the United States and global economies are booming. Will U.S. imports and/or exports increase?

A: The business cycle represents those periods of cyclical fluctuations that occur in an economy in…

Q: 2. Define WTO. In what ways do you think the WTO is still essential to global trade?

A: WTO (World Trade Organization), headquartered in Geneva, Switzerland, can be stated as the…

Q: a) Identify and explain using appropriate diagrams the 2 main categories of gains from trade.  b)…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Sandals Soybeans Country (Pairs per hour of labor) (Bushels per hour of labor) Peru 12 48 Uruguay 16…

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

Q: 2. Define WTO. In what ways do you think the WTO is still essential to global trade? Discuss how a…

A: Define WTO Only the World Trade Organization (WTO) deals with international trade agreements. In the…

Q: How might exchange rate volatility impact international trade?

A: Answer: Introduction: The exchange rate refers to the price of one currency in terms of other…

Q: QUESTION 5 Which of the following is associated with a trade surplus? O a. Domestic investment…

A: "According to the guidelines answer is given to the first question i.e. Question 5." 5) "Trade…

Q: Assume now that the world consists of only two countries: Brandtlandia and Hollandia. Every year…

A: a) Flexible rate of exchange is predicated on market demand for and provide of exchange, export…

Q: 4.The following table shows that the united states and England produced wheat and corn quantities in…

A: Answer -

Q: Suppose the make believe economy of Tinto produces and consumes 2 goods: clothing and food. The…

A: Below is the given values: Consumption of clothing per week = 50 Consumption of food per week = 450

Q: Suppose you are watching a news programme on television It's reported that some European politicians…

A: Quotas refer to fixing the maximum amount of any quantity that can be imported in a domestic…