Consider a Ricardian framework with two countries, China and USA, and two products, cars and textile. The following table shows the labour requirement (in hours) for the production of 1 and 2 in both countries. Cars Textile China 6 USA 14 Y Under which set of values (of X and Y) China will export cars? OX -7, Y - 12.5 OX - 10.5, Y = 8.5 X - 8, Y = 10 OX - 5, Y = 18 Consider a Ricardian framework with two countries, Sweden and Norway, and two products, fish and oil. Norway has comparative advantage in oil throughout this question. Which of the following can never explain an improvement in Sweden's terms of trade? An increase in Sweden's productivity in the fish industry An increase in Norway's productivity in the oil industry An increase in Sweden's demand for oil A drop in Norway's demand for fish

Consider a Ricardian framework with two countries, China and USA, and two products, cars and textile. The following table shows the labour requirement (in hours) for the production of 1 and 2 in both countries. Cars Textile China 6 USA 14 Y Under which set of values (of X and Y) China will export cars? OX -7, Y - 12.5 OX - 10.5, Y = 8.5 X - 8, Y = 10 OX - 5, Y = 18 Consider a Ricardian framework with two countries, Sweden and Norway, and two products, fish and oil. Norway has comparative advantage in oil throughout this question. Which of the following can never explain an improvement in Sweden's terms of trade? An increase in Sweden's productivity in the fish industry An increase in Norway's productivity in the oil industry An increase in Sweden's demand for oil A drop in Norway's demand for fish

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter18: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 2TY

See similar textbooks

Similar questions

a. What are the pressures that encourage MNEs to establish in newly industrialising countries? b. What are the pressures that encourage politicians in newly industrialising countries to allow MNEs to establish in their countries? c. How can MNEs act ethically in host countries?
Assume a Ricardian, constant-cost world. There are two countries, the United States andCanada. Each country can produce cameras and milk. The table below shows production perman-hour for each country. US Canada cameras 6 2 milk 1 2 The United States has a labor force of 1,000 workers, and Canada has a labor force of 500workers.a) Graph the world supply curve for cameras.b) Show a possible world demand curve and price
What is the impact of globalization on how people communicate? Is this something positiveor negative?
23. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the absolute advantage in cloth? a) Portugal b) England c) Both d) Neither e) Cannot tell
Suppose that in a year an American worker canproduce 100 shirts or 20 computers and a Chineseworker can produce 100 shirts or 10 computers.a. For each country, graph the productionpossibilities frontier. Suppose that without tradethe workers in each country spend half their timeproducing each good. Identify this point in yourgraphs.b. If these countries were open to trade, whichcountry would export shirts? Give a specificnumerical example and show it on your graphs.Which country would benefit from trade?Explain.c. Explain at what price of computers (in terms ofshirts) the two countries might trade.d. Suppose that China catches up with Americanproductivity so that a Chinese worker canproduce 100 shirts or 20 computers in a year. Whatpattern of trade would you predict now? Howdoes this advance in Chinese productivity affectthe economic well-being of the two countries’citizens?
were the answer Globalization and the Asia Pacific and South Asia 1,2,3 numkber? please kindly arrange it !
Assume a Ricardian, constant-cost world. There are two countries, the United States andCanada. Each country can produce cameras and milk. The table below shows production perman-hour for each country. US Canada cameras 6 2 milk 1 2 The United States has a labor force of 1,000 workers, and Canada has a labor force of 500workers.a) Graph the world supply curve for cameras.b) Show a possible world demand curve and price (assuming that both countries completelyspecialize).
1. Notice how U.S. imports rose at roughly the same rate asthose of other countries until the 1970s. What accounts forthe acceleration of U.S. imports thereafter? 2. China’s exports rose spectacularly after the 1990s. Germanyincreased its exports in this period dramatically as well. Whatevidence do you see here for increasing competition for theUnited States in a globalizing economy?
(1d) To measure a real increase in wages, the changes would have to be averaged. the wages would have to be adjusted for inflation overtime. (my guess) the increase would have to be compared to the growth in GDP. (1e) Jerusha lives in a country with a large amount of protection under the law for conducting business or bringing her ideas to the market with patten production. Because of the economic conditions what will Jerusha most likely do with her rainwater collecting invention? Keep her ideas in a notebook and sell them to the highest bidder. Find a country where she can develop her idea away from strong patent laws. Develop her invention and bring it to market with ease and minimal cost. (my guess) (1f) Over the past 50 years, which component of consumer spending has steadily gained as a percentage of the total? durable goods nondurable goods services (my guess) (1g) The distinction between real GDP and nominal GDP is important to determine which of the following? The…
What would happen in Ricardian model and the Heckscher-Ohlin model, a) If one country tried to export more to the other country? b) If one country restricted the amount of imports from the other country? c) What does this imply for trade policy? Please answer correct explain plz asap plz Don't answer by pen paper plz
Should economists be in favour of globalisation? Discuss with respect to at least threeof the following areas:a) Comparative advantage and gains from tradeb) Trade and growthc) Migrationd) Winners and losers from globalisatione) Rodrik’s Policy Trile
Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram onto a sheet of paper and then add a foreign county as a third agent. Draw a rough sketch of the flows of imports, exports, and the payment for each on your diagram.