i live in turkey Do you think that Heckchser Ohlin theorem is the trade policy of your country? You have to answer these questions after understanding the Heckser Ohlin Theorem. a) If yes, try to support your answer with export partners and products and volume of trade with your main trade partners. b)If no, discuss why not and support your answer with solid and real numbers and reasons

i live in turkey Do you think that Heckchser Ohlin theorem is the trade policy of your country? You have to answer these questions after understanding the Heckser Ohlin Theorem. a) If yes, try to support your answer with export partners and products and volume of trade with your main trade partners. b)If no, discuss why not and support your answer with solid and real numbers and reasons

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter28: International Trade And Finance

Section: Chapter Questions

Problem 18SQ

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i live in turkey . a)Do you think that Heckchser Ohlin theorem is the trade policy of your country? You have to answer these questions after understanding the Heckser Ohlin Theorem. If yes, try to support your answer with export partners and products and volume of trade with your main trade partners. If no, discuss why not and support your answer with solid and real numbers and reasons.
Consider the Heckscher-Ohlin model of international trade. There are two goods, shoes and computers, produced with labour and capital. The production process features diminishing returns to each factor of production. The production of shoes is labour-intensive and the production of computers is capital-intensive. There are two countries, the UK and India. Denote the labour force and the capital stock of the UK and India by LUK and KUK, and LIN and KIN , respectively. The UK is capital-abundant and India is labour abundant. Describe India’s factor markets: on a graph with the labour-capital ratio (L/K) on the horizontal axis and the wage-rental ratio (W/R) on the vertical axis, depict India’s no-trade economy-wide relative demand (RD) and relative supply (RS) of labour-to-capital. Show the no-trade equilibrium wage-rental ratio.
The country of Autarkistan is currently closed off from the world and engages in no international trade. Like the rest of the world, it produces and consumes (only) two goods, textiles and machines, using labor and capital. The textile industry employs more labor, per unit of capital, than does the machine industry. Being poor, Autarkistan has far less capital per worker than does the rest of the world. According to the Factor Proportions (H-O) model of international trade, in which good does Autarkistan have a comparative advantage? Group of answer choices Textiles Machines Cannot tell.
The country of Autarkistan is currently closed off from the world and engages in no international trade. Like the rest of the world, it produces and consumes (only) two goods, textiles and machines, using labor and capital. The textile industry employs more labor, per unit of capital, than does the machine industry. Being poor, Autarkistan has far less capital per worker than does the rest of the world. According to the Factor Proportions (H-O) model of international trade, in which good does Autarkistan have a comparative advantage? Again, suppose that Autarkistan opens up to free international trade with the world. Using the H-O model, what will happen to the real wage of labor in the machine industry in Autarkistan? Group of answer choices Rise Fall Not Change Cannot tell.
Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply (s) for cameras in Thailand and Japan is described by the following functions: QdT = 60 – P; QsT = –5 + 1/4 P; QdJ = 80 – P; QsJ = –10 + 1/2 P. P is the price measured in a common currency used in both countries, such as the Thai Baht. a. Compute the equilibrium price (P) and quantities (Q) in each country without trade. b. Now assume that free trade occurs. The free trade price goes to 56.36 Baht. Who exports and imports cameras and in what quantities?
Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of meekers is $30. Suppose that the world price of meekers is $40. Assume that Meekertown is too small to influence the world price of meekers once it enters the international market. Drop down options import or export.
Assume that you have been hired by an International Organization to be consulted on various issues that the country Motherland faces. For this exercise, assume that Motherland is a small agricultural economy. Assume that the biggest trading partner of Motherland is the United States. Unlike Motherland, the United States is a large industrial country. What type of trade model can best explain the trade between Motherland and the United States? Explain your answer in no more than 200 words. (4 marks)
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.
"Imports destroy jobs; exports create them. The average American is hurt by imports and helped by exports." Do you agree or disagree with this statement? Explain and support. Review absolute and comparative advantages. Personal private property protection allows for greater entrepreneurial ventures, and thus an expanding economy and job growth; can import tariffs and quotas reduce the benefits of trade? Review the mechanics of import tariffs and quotas and world price.
With Bangladesh opening up to international trade, its consumption possibilities will expand leading to an increase of its national welfare. Do you agree to this statement? Justify your answer. (Standard Trade model)