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Explain horizontal and vertical integration.
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- 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?Explain how hold-up problem can cause to vertical integration?Can someone explain to me the curve in this economic module
- How do you know that the equillibrium prices are lower, the quantities produced are higher and the profits produced are lower in the merged scenarioAccording to Degree of Integration, give the definition of Common Market and ExamplesGhana’s government wants to shift from agriculture to manufacturing. To do so, the government plans to implement a policy of import substitution industrialization (ISI). About half of Ghana’s population depends on agriculture, but Ghana still imports some of its food. The majority of Ghana's people live in rural areas and exist on a subsistence way of life. Ghana has one of the highest rates of income inequality in the world. Nearly half of the population is employed in agriculture. Ghana’s president’s ISI strategy is to ask Switzerland to adopt a voluntary export restraint (VER). He believes that this is likely to increase Ghanaian welfare. Using two diagrams (one for each country) explain the Ghanaian welfare consequences of this policy.
- If countries specialize according to their absolute advantage then the Ricardian model statesthata. the. trade is beneficial for all trade partners.b. trade is a stupid idea anyway.c.it is ambiguous whether trade is beneficial for all trade partners.d. trade is only beneficial for those who have absolute advantage as wellWhat does it mean to have a globalized economy? International trade is significant to all continues Countries only trade within their borders Trading only happens as the need arises Products are meant to be produced locally Which among the following statement are the benefits and ills of globalization Access to a variety of products Environmental destruction Loss of unique and individual cultures All of the above Why do goods and services move around the world faster than ever? Free trade agreements, and technological advancements Advent of global organizations Space travel Regional alliancesIn reality, the economies of most countries are mixed rather than being pure market or command economies. Explain the reason for this