Is export promotion a same policy to that of import substitution? Which is better import substitution or export promotion? What are the advantages and disadvantages of import substitution? What are the advantages of export promotion?
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- Which of the following is NOT an outcome of import substitution policy for South Africa in the long - run? Can the outcomes be different in the short and the long - run? Justify your answer using the Prebish - Singer hypothesis. a) Increased economic growth b) Reduced reliance on imports c) Export Promotion, exporting more primary commodities d) Improved trade balanceSuppose country A and B have a labour force of 1 and produce hops and barley using only labour. Country A's unit labour cost are 0.5 for hops and 0.5 for barley, country B's 0.2 for hops and 0.4 for barley. Suppose that both are needed to brew beer in equal quantitiy, so that both national and international demand has the property that equal amounts of barley and hops are demanded. How much more beer (as a percentage) will be brewed under international trade than in autarky? Please enter the percentage rounded to a whole number (up or down is both acceptable) without the percentage sign.Q3. Suppose that country A produces two goods (a labor-intensive good X, furniture, and a capital-intensive good Y, autos) and is considering forming a free trade agreement with one of its trading partners. The future free trade agreement is opposed by labor unions in country A. Could you infer which type of country (namely, capital- or labor-abundant) country A and its trading partner are, respectively? What would happen to the two countries’ w/r ratios (the ratios of wage rate relative to capital rental rate) after the formation of the free trade agreement? Your answer:
- how do I distinguish between the Marginal rate of substitution and the Marginal rate of transformation in international trade using equations and graphs to support my answer?Import Substitution Industrialization was a key component of state-led economic growth in the postwar era in the global south. What is Import Substitution Industrialization, and what policy tools did states use to attempt it? What difficulties did countries of the Global South face in accomplishing Import Substitution Industrialization?The parliament of Ghana is debating whether import substitution should take the form of quotas or tariffs. You are asked to brief them on the difference between the two. A representative from Ghana's National Labour Party is particularly worried about consumers? Which policy (tariffs or quotas) is better for consumers?
- With free trade, why is wage (income) gap between American skilled and unskilled workers widened? Which of the following is LEAST appropriate for an answer? A. Because American companies producing very expensive products need to hire more skilled workers while American companies producing inexpensive products do not at least hire more of unskilled workers or even reducing the employment of the existing unskilled workers. B. Because American people are willing to buy inexpensive products imported from other developed countries having comparative advantage in producing those inexpensive products rather than inexpensive ones manufactured in the USA. C. Because American companies producing very expensive products need to produce more and more by hiring more American skilled workers as demand for American expensive products from developing countries increases. D. Because free trade allows the USA to focus on specializing in producing very expensive products…(This is a complete question) Ghana’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. Explain import substitution industrialization and how it can affect Ghana. What role does learning by doing play, and when does it make sense for the government to interfere?If it would be cheaper to give each steelworker $375,000 per year in cash than impose restrictions on imports of steel, why do we have the import restrictions rather than the cash payments?
- Suppose the transferability of skills from an origin to a destination increase. What is likely to happen to immigrants' wages relative to natives' wages in the destination? what do you think will happen to immigrants' skill acquisition in the destination, and why?What is the relationship between production costs and comparative advantage? Group of answer choices Comparative advantage considers, “How much am I giving up to produce this good in this country?” Comparative advantage identifies the good for which the producer’s absolute advantage is relatively smaller. Comparative advantage identifies where the producer’s absolute productivity disadvantage is relatively larger. Comparative advantage happens when the production costs for both trading partners are the same.Assume we are in a Ricardian world, where there are 2 countries: Home and Foreign, 2 goods: x and y, and one factor of production: Labor(L). The labor unit requirements for production of each good and the aggregate labor supply in each country are given as follows: Home country: ax= 4, ay= 3, L= 2400 Foreign country: a*x= 10, a*y= 6, L= 3000 d) If there is no trade between Home and Foreign, what will the relative price of x in terms of y be in each country?
