As a result of trade between two countries which are of completely differen economic sizes, specialization in the Ricardian 2X2 model tends to be complete in the small country but incomplete in the large country. be incomplete in both countries.
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- Consider the Ricardian model with two countries, Home and Foreign, and two goods, X and Y. If Foreign workers have a higher real wage than Home workers and Home country has a comparative advantage in good X, we can conclude that: (a) Foreign country has absolute disadvantage in good Y. (b) Home country has absolute disadvantage in good X. (c) Foreign country cannot benefit from trade with Home country. (d) If trade is allowed, in Foreign country, those labours that are employed in the production of good X will lose from trade whereas the ones employed in the production of good Y will gain from trade. Explain your answer clearly. Limit your explanation to 200 words.in the ricardian model, a. differences in factors endowments give rise to trade b. countries can run trade deficits and surpluses c . there is only one industry in each country d. there is only one factor of productionA large part of China's growth was due to export-led investment. They used the country's centralized authority to coordinate investments across industries. As more producers located in China, the greater the benefits were for other suppliers to operate there. What economic growth model is this statement consistent with? Lewis two-sector model The Big Push Kremer's O-Ring Theory Neocolonial Dependence Model
- Consider the basic Solow model with no population growth and no technological progress and a production function of the form F (K, H ), where H denotes the efficiency units of labor (human capital) given by where N is the set of all individuals in the population, and hi is the human capital of individual i. Assume that H is fixed. Suppose there are no human capital externalities and factor markets are competitive. (a) Calculate the steady-state equilibrium of this economy. (b) Prove that if 10% higher h at the individual level is associated with a% higher earnings, then a 10% increase in the country’s stock of human capital H will lead to a% increase in steadystate output. Compare this result to the immediate impact of an unanticipated 10% increase in H (i.e., consider the impact of a 10% increase in H with the stock of capital unchanged).Specifically, this insert begins with the conjecture that at this juncture, opinions differ on the future of IB and globalization, but that three scenarios predominate, specifically: Further globalization is inevitable. IB will grow primarily along regional rather than global lines. Powerful forces opposing further globalization and IB will slow their growth. Those anticipating slowing globalization would likely point to all of the following trends except for ________. A) Antiglobalization interests have been successful in electing parties that oppose freer movement of trade or people. B) Technological, transportation, and communication advances will decline in the near future. C) Major countries have either ignored certain international treaties or have refused to sign them. D) The growing split between those who succeed in a global environment and those who do not will foster greater antiglobalization sentiments.Using the one factor Ricardian model concept and the unit labor requirements information in the table below, determine d) In what commodity production, foreign has a comparative advantage.Explain.e) Which country has an absolute advantage. Explainf) If PC is the price of Cheese and PW is the price of Wine, and PC = PW, thenWhat commodities will domestic specialize in?g) If PC is the price of Cheese and PW is the price of Wine, and PC = PW, thenwhat commodities will foreign specialize in?h) Using the comparative advantage information above, determine the commodity thatexported and imported by domestic and foreign respectively?i) If PC = PW or PC/PW = 1, what is the gain from trade obtaineddomestic and foreign if each country specializes inwhich production has a comparative advantage? Explain.j) If if PC = PW = $9, what is the wage relative to trade.Which country's workforce benefits from the trade?
- China’s economic transformation since the late 1970s has been a process of neoliberalization, and, as such, it has resulted in growth without development.’ Discuss it with coherent argument and logic. In both perspective.The economic growth model(s) of ( ) below can be recognized as an endogenous model. A Slow-Swan model; B Ricardo’s model; C Romer-Lucas model; D Harrod-Domar model; E Aghiot-Howitt model.AbstractReducing unemployment rate and achieving a sustainable economic growth underscore the Sustainable Development Goal 8. Our study investigates a new model that specifies the external-factors-led growth hypothesis for the South African economy. The independent variables include trade openness, external debt, FDI and exchange rate against GDP as the targeted variable. The ARDL approach was adopted after achieving a mixed order of integration from the stationarity test using traditional unit root tests. All external factors were found to exert a positive influence on economic expansion. Trade openness and exchange rate specifically, exert significant influence on economic growth, which means that an improvement in these factors will proportionately favour economic expansion. In essence, a 1% improvement in trade openness and exchange rate will generate an equivalent of 0.30% and 0.19% increase in GDP in the long-run. On average, trade openness, exchange rate and external loan are…
- Specifically, this insert begins with the conjecture that at this juncture, opinions differ on the future of IB and globalization, generally coalescing on three projections: Further globalization is inevitable. IB will grow primarily along regional rather than global lines. Forces working against further globalization and IB will slow down the growth of both. The view that regionalization, rather than globalization, will prevail in the future is largely based on the use of __________ among countries in a region. A) religious shifts B) common language C) universal products D) shared idealsExplain the absolute convergence and conditional convergence hypotheses in the Solow-Swan model (provide country examples as well).Cobb-Douglas functions with constant returns to scale can be used to model A technological change that increases aggregate productivity B skill-biased technological change C no technological change at all. D sector-biased technological change