Consider an H-0 economy in which there are two countries (US and France), two goods (wine and cheese) and two factors (capital and labor). Q1: Suppose an increase in the labor force in the US causes cheese production to increase. Which factor is used intensively in wine production? Which H-O theorem is applied to get this answer? Explain.
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International trade
Consider an H-0 economy in which there are two countries (US and France), two goods (wine and cheese) and two factors
(capital and labor).
Q1: Suppose an increase in the labor force in the US causes cheese production to increase. Which factor is used intensively
in wine production? Which H-O theorem is applied to get this answer? Explain.
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- International trade Consider an H-0 economy in which there are two countries (US and France), two goods (wine and cheese) and two factors(capital and labor). Q1:Suppose a decrease in the price of cheese causes a decrease in the wage rate in the US economy. Which factor is used intensively in cheese production in France? Which HO theorem is used to get this answer? Explain.international trade Consider an H-0 economy in which there are two countries (US and France), two goods (wine and cheese) and two factors(capital and labor). Q1: Suppose France exports wine, the capital-intensive good. Which factor benefits from free trade in the US? Explain.International trade Consider an H-0 economy in which there are two countries (US and France), two goods (wine and cheese) and two factors (capital and labor).Q1: Assume the US is labor-abundant and cheese is labor-intensive. What is the pattern of trade in free trade? (State what the US and France import and export). Which theorem is applied to get this answer? Explain.
- I made a mistake when submitting, the answer options are this instead: - Denmark has a slight comparative advantage in television production because that activity is skill and capital intensive. - Denmark has a strong absolute advantage in TV production thanks to its skilled workers. -Televisions are highly differentiated and knowledge intensive products, where mainly increasing returns drives trade. - Denmark outsources important parts of its TV value chain. Firms move down their learning curves. Does the original answer still stand? Thank youQ65 If Canada can produce both cannabis and soybeans more efficiently, that is, with smaller absolute amounts of resources, than Brazil, then: Multiple Choice Brazil should impose tariffs. then there is no possible basis for mutually advantageous specialization and trade between Canada and Brazil. we can conclude that Canada is an industrially advanced economy and Brazil is a developing economy. it will necessarily be advantageous for Brazil to import both cannabis and soybeans from Canada. mutually advantageous specialization and trade between Canada and Brazil may still be possible.International trade Consider an H-0 economy in which there are two countries (US and France), two goods (wine and cheese) and two factors(capital and labor). Q1:Suppose workers in France benefit when tariffs are increased on cheese imports. Which factor is used intensively in cheese production? What is France's abundant factor? Explain.
- Economics - International Trade Q: In figure 2.6, a positively sloped curve is drawn to show the foreign supply of exports of food rising as the price of food rises. How can this response be reconciled with the assumption that each nation’s endowment supply of commodities is fixed with respect to price?Domestic producers of microprocessors send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of microprocessors. The lobbyist claims that the U.S. microprocessor industry is new and cannot currently compete with foreign firms. However, if trade restrictions were temporarily imposed on microprocessors, the domestic microprocessor industry could mature and adjust and would eventually be able to compete in the world market. Which of the following justifications is the lobbyist using to support their argument in favor of the trade restriction on microprocessors? National-security argument Infant-industry argument Unfair-competition argument Jobs argument Using-protection-as-a-bargaining-chip argumentWhich of the following are correct regarding the sources of gains from trade and absolute / comparative advantages? absolute advantage measures cost from an explicit input utilization perspective it is generally comparative, not absolute advantages, that give rise to gains from trade under specialization absolute advantages alone determine the direction of trade in goods and services comparative advantage measures cost from a foregone output perspective
- The intra-industry trade index in television trade for Denmark is 0.92. What conclusion can we draw from this? Group of answer choices - Denmark has a slight comparative advantage in television production because that activity is skill and capital intensive. - Denmark has a strong absolute advantage in TV production thanks to its skilled workers. Televisions are highly differentiated and knowledge intensive products, where mainly increasing returns drives trade. - Denmark outsources important parts of its TV value chain. Firms move down their learning curves.Alice is the global marketing director for a multinational electronics manufacturing firm. She is assigned with the task of expanding the firm to large and growing international markets. Which of the following factors of international trade will benefit Alice's company a) International trade will provide the company with a comparative advantage. b) The company will benefit from the inflow of new, innovative ideas. C The company will benefit from a balance of trade. ) d) International trade will provide the company with an absolute advantage.Q69 Comparative advantage is the... a. Gains from international trade. b. Ability of one region to produce a commodity with less labour input than another region. c. Terms of trade index. d. Ability of one region to produce a commodity at a lower opportunity cost than another region. e. Ability of one region to produce a commodity with fewer total inputs than another region.