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- 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: Suppose an increase in the labor force in the US causes cheese production to increase. Which factor is used intensivelyin wine production? Which H-O theorem is applied to get this answer? Explain.An inefficient manufacturing base is likely to result when: A. only those goods are produced in which the domestic economy has a comparative advantage. B. a newly developing economy has no international trade controls C. competitive foreign imports are restricted. D. the economy produces only those goods in which it has technical expertise E. producers compete solely on the basis of low cost.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:Suppose workers in France benefit when tariffs are increased on cheese imports. Which factor is used intensively in cheese production? What is France's abundant factor? Explain.
- The threshold productivity to become an exporter is A.higher than the one to serve the domestic market B.lower than the one to serve the domestic marketinternational 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: Suppose France exports wine, the capital-intensive good. Which factor benefits from free trade in the US? Explain.If a country produces a commodity in the range of decreasing returns to scale, and the country begins to export more in a pure free trade system, the domestic price of the commodity will a. rise. b. fall. c. exceed the price in foreign countries. d. be below the price in foreign countries. e. One cannot predict the impact on the price of the commodity.
- Which country will be exporting and importing which product? A) England will be exporting both wine and cloth B) Portugal will be importing wine and importing cloth C) Portugal will be exporting cloth and importing wine D) England will be exporting wine and importing cloth E) None of the aboveQ69 Comparative advantage is the... a. Gains from international trade. b. Ability of one region to produce a commodity with less labour input than another region. c. Terms of trade index. d. Ability of one region to produce a commodity at a lower opportunity cost than another region. e. Ability of one region to produce a commodity with fewer total inputs than another region.Both countries agree that one tonne of steel can be exchanged for one tonne of oil. Calculate the gains after trade is allowed if Country A consumes 30 tonnes of oil domestically.
- The primary gain from trade is: more goods than would be attainable through domestic production alone. increased employment in the domestic export sector. tariff revenue. increased employment in the domestic import sector.QUESTION 8 Gains from trade come from: Excessive negotiations. Specializing in one’s comparative advantage. Individuals becoming generalists. Above. All of the above.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.