Asked Feb 28, 2020

Explain the below by providing viable explanations to illustrate the below:- 

  1. Dutch Disease
  2. Rybczinski’s theorem
  3. Leontief’s Paradox
  4. Immizerizing Growth  



Expert Answer

Step 1


1. Dutch Disease - With the discovery of natural gas in Netherlands in 1977 lead to decline in manufacturing  activity in other manufacturing sector while overutilisation of resource in one sector while under utilisation of resources in other sectors.

So, with expansion of few sector lead to underutilistion of other sectors in country which has effect on country's import and export as the product of developed sector lead to increase in export and help country to earn foregin currecny . This lead to a trade imbalance among trading country . 

As this ef...

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