According to the Heckscher - Ohlin model, OA. a country gains from trade if its exports have a high value added. OB. only the country with the more advanced technology gains from trade. OC. everyone gains from trade. OD. the scarce factor gains from trade and the abundant factor loses. OE. the gainers from trade could compensate the losers and still retain gains.
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- In the Heckscher-Ohlin model the factor that a country is abundant in will gain from trade, i.e. its income will increase. True FalseThe Leontief study testing the Heckscher-Ohlin theory showed thata) The US exported capital-intensive goods and imported labour-intensive goods.b) The US exported labour-intensive goods and imported labour-intensive goods.c) Even though the US was a capital abundant nation, it exported labour intensive goods.d) The US was a capital abundant nation and therefore, exported capital intensive goods.Buy American! Buy Spanish! British jobs for British workers! The ideology of economic nationalism seeks to implement trade policies that help to keep jobs and investment at home, while ignoring the advantages of open international trade and invest-ment. Economic nationalism was popular during the Great Depression of 1929–33, when it served to protect domestic firms from international competi-tion. However, this led to curtailing international business activity, making the global economic slow-down worse. Widely recognized as a myopic policy, economic nationalism nevertheless re-emerged dur-ing the global financial crisis that originated in the United States in 2008, prompting many analysts to wonder whether the public has learned anything from international business history.Soon after the U.S. stock market crash of 1929, Willis Hawley and Reed Smoot, two Republicans in the U.S.…
- According to the chart and the Heckscher-Ohlin theory the US will _________ labor intensive and ________ capital intensive goods. A. Export, export B. Import, export C. Export, Import D. Import, ImportEcuador’s biggest export is crude petroleum (unprocessed), 63% of which it exports to the United States, and Ecuador’s biggest import is refined petroleum (processed), of which it imports 70% from the United States. Based on this information, which of the following statements is true? Group of answer choices Ecuador has comparative advantage in extracting crude petroleum; the US has comparative advantage in producing refined petroleum. Not enough information. The US has comparative advantage in extracting crude petroleum; Ecuador has comparative advantage in producing refined petroleum. Ecuador has absolute advantage in extracting crude petroleum and the US has absolute advantage in producing refined petroleum.In the specific factor model with labour as a mobile factor, introducing trade lowers the welfare of workers increases output and consumption in the world. increases the welfare of all the owners of specific factors in Home. induces a Pareto improvement for the economy that exports more.
- Consider the specific factors model. There are two countries (Home and Foreign), two industries (Manufacturing and Agriculture) and three factors (labour, land, and capital.) Assume that home has comparative advantage in agriculture. Using a figure, show the impact of trade on earnings of labour, capital and land. Who will be in favour of trade and who will be against it?Nation 1 - 400 million employees Nation 2 - 400 Million employees Nation 1 and 2 workers can produce - 16 TVs per year Nation 1 worker can produce - 40kg Beef per year Nation 2 worker can produce - 20 kg Beef per year Which country has comparative advantage for TVs and which country has comparative advantage for BeefQ. 4 Export - biased growth in Country H will : O. Improve the terms of trade of Country F. O. Improve the terms of trade of Country H. O. Worsen the terms of trade of Country F. O. Trigger anti - bias regulations of the WTO .
- Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles are capital-intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin (H-O) assumptions hold. The other country in the model is Vincyland. Questions: Give a short background on the Heckscher-Ohlin Trade model and then answer the following questions. (a) Based on the H-O assumptions, which good should Vincyland export, and why? (b) What trade pattern would occur if the Leontief Paradox holds? Which two (2) explanations of the Leontief Paradox most strongly support the H-O theory? Give the reasons. (c) In autarky, according to Ohlin, how does Trinbago’s relative price of labor compare to Vincyland’s?We have export and import data of a country for the last two years. In addition, let's assume that we have the list of the most exported goods along with the countries that this country exports and imports to. How do we know if the trade pattern of this country is compatible with the comparative advantage theory? Also, what data do we need if we want to assess whether this country's trade pattern can be explained by the Hecksher-Ohlin theory?3. True or False? The gravity model states that trade between two countries will increase if the size of either country’s economy increases and the distance between the two countries is bigger. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.