In che mid-1980s several of South Africa's main trading partners imposed trade sanctions on South Africa in an effort to bring an end to the then- prevailing policy of apartheid. South Africa mainly relied on the exports of primary commodities like gold, iron and other precious metals, while importing mainly capital goods. This almost instantly led to South Africa expe- riencing a shortage of capital goods, resulting in subdued economic growth. 31. In what did South Africa have a comparative advantage? 32. a.Draw a graph to illustrate production, consumption and trade in South Africa before the imposition of trade sanctions. b.Was South Africa consuming inside, on or outside its PPP? Explian your answer. c.Draw a graph to show the effects of trade sanctions on consumption and production in South Africa. d. Did trade sanctrions change any opportunity coSts in South Africa? If so, did the opportunity cost of everything increase? Did the opportunity cost of any items decrease? Illustrate your answer with appropriate graphs.
In che mid-1980s several of South Africa's main
trading partners imposed trade sanctions on South
Africa in an effort to bring an end to the then-
prevailing policy of apartheid.
South Africa mainly relied on the exports of
primary commodities like gold, iron and other precious
metals, while importing mainly capital goods.
This almost instantly led to South Africa expe-
riencing a shortage of capital goods, resulting in
subdued economic growth.
31. In what did South Africa have a comparative
advantage?
32.
a.Draw a graph to illustrate production,
consumption and trade in South Africa
before the imposition of trade sanctions.
b.Was South Africa consuming inside, on or
outside its PPP? Explian your answer.
c.Draw a graph to show the effects of trade
sanctions on consumption and production
in South Africa.
d. Did trade sanctrions change any
coSts
opportunity cost of everything increase?
Did the opportunity cost of any items
decrease? Illustrate your answer with
appropriate graphs.
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