Q39 According to the Heckscher-Ohlin theory, national comparative advantages exist because of... a. Differences in national factor endowments. b. Differences in climate alone. c. International factor mobility. d. Economies of scale. e. Differences in saving and investment.
Q: a. Define the gravity model. Specify the variables utilised. b. Apply the gravity model to India and…
A: Answer a. In international economics, the gravity model of international commerce is a model that…
Q: Interpret what intra-industry trade is and demonstrate it with a product with two (2) trading…
A: Intra-industry trade involves the exchange of goods pertaining to the same industry. The concept is…
Q: Consider a Ricardian model with two countries, the US and Ecuador, producing two goods, bananas and…
A: Answer : A. Absolute advantage shows the contrasts between the contribution of labor units in at…
Q: 1: National income level in an open economy with government activities and data in the table what is…
A: Formula to calculate GDP using income approach is = Total National Income + Sales tax depreciation…
Q: By using the concept of the Standard Trade Model, and the assumptions of the H-O model. a) Explain…
A: Standard trade model is based on four important relationships. They are the relationship between the…
Q: Question 1 A. Explain the reason(s) why the equalization of relative factor prices is a result of…
A: A) Factor price equalization is an economic theory proposed by Paul A. Samuelson in 1948, which…
Q: Foreign Direct Investment results in the following benefits: Select one: a. Higher productivity b.…
A: A foreign direct investment (FDI) is an investment made by a firm or individual in one country into…
Q: In class we worked through the trade example where Home had a comparative advantage in cheese (alc…
A: Opening of trade means that autarky price is going to free trade. Now workers are very much…
Q: 1- What is the definition of Capital Flight? 2- What are the causes of Capital Flight? 3- How to…
A: 1) When foreign investments in domestic currency deposits are reduced either due to a relatively…
Q: The Case: Ghana is a country located on the west coast of Africa. Ghana is considered as one of most…
A: GDP, the acronyms of gross domestic product, is a macroeconomic tool to estimate the economic…
Q: 1) Why does the gravity model work? A) Large economies became large because they were engaged in…
A: The correct answer is given in the second step.
Q: Let us assume wine and steel can be produced both by France and Italy. France requires 20 hours of…
A: The Ricardian model is a most basic models, yet it provides some of the most persuasive arguments…
Q: n open economy is characterized by the existence of trade activities and international capital flows…
A: a) The equation is: Y=C+I+G+(X-M) Now, we will do the mathematical equation that impact of a trade…
Q: Absolute advantage simply compares the productivity of a worker: In leaner years. To the…
A: Absolute advantage is the advantage that a country has over the other countries in terms of the…
Q: Take into account an H-O economy where there are two factors (US and France), two items (wine and…
A: The Heckscher-Ohlin (H-O; sometimes known as the factor proportions) model is one of the most…
Q: The economic entities in Islamic macroeconomics consist of: A) Public sector, the private…
A: Economics is divided into two categories: Microeconomics Macroeconomics…
Q: 4- Summarize the Venezuela economy and oil dependency as an example of Capital Flight.
A: In mid-2014, global oil prices fell and Venezuela's economy entered a free fall. Yet Venezuela…
Q: (Comparative Advantage) Suppose that each US worker can produce 8 units of food or 2 units of…
A: Absolute advantage refers to a country producing more units of output relative to another country…
Q: (Ricardian Model) In class we worked through the trade example where Home had a comparative…
A: Given information alc /alw < alc* /alw* In home country real wage in terms of wine has increased…
Q: Consider two countries, A and B. Assume that both countries have identical physical endowments of…
A: The question is based on the policies different governments follow and their impact on the economy.
Q: A. Countries that export a diversified selection of export products do not seem to be at much risk…
A: Since multiple questions are asked here, we will answer the first question for you. If you want any…
Q: Case: Suppose you are watching a news report with a friend. The news report points out that a…
A: Gross domestic product divided by midyear population equals GDP per capita. Gross domestic product…
Q: Will mega-regional trade agreements be beneficial to develop countries? How?
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Meagan, a contractor, is hired to install cabinets in a new home and has to decide whether to build…
A: Comparative advantage is the ability of a producer to produce the product with least opportunity…
Q: In the specific model with two consumption goods and labour (mobile) and land and capital (specific…
A: The specific factors model is a short-run model in which the capital and land inputs are fixed but…
Q: A country that engages in no foreign trade is said to be in a situation of... a. Reciprocal absolute…
A: Absolute advantage - A country has an absolute advantage when it produces larger amount of the good…
Q: How does a straight-line production possibilities boundary differ from a concave boundary?
A: A production–possibility frontier (PPF), production possibility curve (PPC), production possibility…
Q: Analyze the countries given in the table comparatively by taking into account the indicators of…
A: Using some variables like education, GNI expectancy of life, the development of a nation is measured…
Q: Statements. As one of the largest and most advanced countries in the world, the United States would…
A: Despite accounting for less than 5% of the global population, Americans generate and earn more than…
Q: M2. Every country can produce two goods-masks and wheat, using only their citizens' time. Consider…
A: a.Same number of people were employed to produce mask before plague.It was due to plague that masks…
Q: Public spending means & Includes ? Select onev option Govt. five year plans expenditure foreign…
A: Public spending Public spending refers to the expenditure incurred by the government. In simple…
Q: If a country's economic data shows that private savings equal $300 million, government spending…
A: given that, private savings =$300 million government spending = $400 million taxes = $300 trade…
Q: Can this scenario be beneficial to the Philippines? Explain your reason. Scenario - The Philippines…
A: The growth and development of a nation depend upon the economic and social welfare of its people.…
Q: H6.. Discuss the current political and economic challenges faced by Russia under Vladimir Putin and…
A: Because of their developing authoritarian tendencies, revisionist opponents of the United States'…
Q: Which of the following was a positive side-effect of Latin America’s import substitution…
A: Import substitution policies are measures adopted to control import of foreign goods and encourage…
Q: Why did most countries of Latin America follow inward-looking strategies after WWII? List th…
A: In Latin America's many countries followed an inward-looking strategy because of the great…
Q: List the main pros and cons of taking the import-substituting industrialization versus concentrating…
A: Introduction Import-replacing or import substitution is a strategy that cannot be functional 100% in…
Q: Why does the United Nations discourage the usage of the global divide—first, second and third world…
A: When talking about the division of the global economy into three worlds such as first, second, and…
Q: How do different forms/stages of media impede and support global integration? Intro How media…
A: Mass media are now viewed by worldwide news, FTV programs, new technology, films, and music to be a…
Q: Nation 1 - 400 million employees Nation 2 - 400 Million employees Nation 1 and 2 workers can…
A: A economy is said to be an open economy if it engages in trade with other countries. The free trade…
Q: Suppose there are 4 economies as trading partners: A; B; Vs ; D. In 2021, A sale of exotic fruits…
A: Current Account is defined as the representation of a country's imports and exports of goods,…
Q: Other things equal, if Mexico devotes more resources to train its population than Spain, O A) Mexico…
A: Spain's diversified economy depends on textiles Tourism industry, pharmaceuticals, footwear,…
Q: 1. Which of the following is true and which is false: a) The trade-to-GDP ratio for a nation that…
A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…
Q: With the advent of globalization and the WTO operations, which of this is happening or have…
A: The answer is - d. Free-Market Analysis
Q39
Step by step
Solved in 2 steps
- Economic Scenario: Country A has one of the highest real GDP while Country B has one of thehighest real GDP per capita in the world respectively. a.what are the (3) comparative differences between real GDP and real GDP per capita. b.What does this tell us, about the well-being of the residents of Country A and B?34. To obtain good A in which one does not have a comparative advantage, it is better to acquire it by "indirect production" – producing good B, in which one does have a comparative advantage, and trading it for good A. True False False1. Which of the following is true and which is false:a) The trade-to-GDP ratio for a nation that had €600 million in exports, €400 million in imports,and GDP of €2,000 million is equal to 0.5.b) The trade-to-GDP ratio for a nation that had €600 million in exports, €400 million in imports,and GDP of €2,000 million is equal to 0.05.c) A trade-to-GDP ratio in percentage terms equal to 120% means that the country exchanges1.2 times worth of goods and services of what it generates domestically over a certain period.d) The trade-to-GDP ratio is a measure of how income distribution between nations.e) The trade-to-GDP ratio is a measure of how intensively a country participates in internationaltrade.f) The higher the trade-to-GDP ratio, the stronger is the purchasing power of the country in theworld markets
- 3. True or False? The gravity model states that trade between two countries will increase if the size of either country’s economy increases and the distance between the two countries is bigger. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.1. Research into how this stories illustrates the impact of foreign influence on Veitnam. A. Post-Colonial Criticism B. Postmodernism C. Structuralism D. Gender Criticism 2. An analysis of the American definition of masculinity in regards to war. A. Post-Colonial Criticism B. Postmodernism C. Structuralism D. Gender Criticism 3. A study of the effect of retelling the story in new and different ways to try to express the same concept. A. Post-Colonial Criticism B. Postmodernism C. Structuralism D. Gender CriticismIn the specific model with two consumption goods and labour (mobile) and land and capital (specific factors), in Home in the market equilibrium with free international trade of goods (compared to autarky).Which statements are correct? 1.the economy does not achieve a Pareto improvement. 2.the profit of the capital owners increases. 3.a good that is exported cannot have a higher price. 4.consumption is strictly higher. 5.the price for land cannot be lower. 6.workers will be better off if they consumption demand is sufficiently biased toward imported goods. 7.the real wage will be higher
- 1. Why do you think many big corporations like Apple, Coca-Cola, Microsoft, choose to manufacture their products in countries located in the Global South than in the Global North? 2. Based in your knowledge, why rich countries become richer and poor countries become poorer? Support your idea.Naked Economics: Undressing the Dismal Science Book by Charles Wheelan Which of the below statements does NOT reflect the ideas expressed by the author Charles Wheelan in the chapter titled, "Trade and Globalization," in the book, Naked Economics: Undressing the Dismal Science? In short, with which of the below statements, in one form or the other, DOES NOT match the ideas expressed by Wheelan in this chapter? A) There are no losers in international trade and globalization. Within each economy engaging in trade all workers in all economies gain from trade. B) Trade lowers the cost of goods for consmers, which is the same as raising their incomes. C) Trade is based on voluntary exchange. D) The comparative advantage of workers in poor countries is cheap labor.1. Try to describe the global economic crisis on world trade and commodity prices because of the COVID and use the Stopler-Samuelson theorem to predict the effect on income distribution in Australia. It should be imagined Australia is a specific factor economy with 'mining' in Queensland and Western Australia on the one hand, and a sector included manufacturing, agriculture and services in the other states. Assume that there is mobile labour between these two sectors, that there is no unemployment, and that Australia is a price taker for its exports.
- Ricardian Model) In class we worked through the trade example where Home had a comparative advantage in cheese (alc /alw < alc* /alw*). The result was that world price ratio was between the autarky price ratios of the two countries. We showed for the Home country that the opening of trade resulted in the workers’ real wage in terms of cheese remaining the same while the real wage in terms of wine increased. (There is no need to use diagrams to answer the questions below.) (a) With the opening of trade what will the nominal wage W* be in the Foreign country? (You will not be able to find a numerical value here.) Briefly explain. (b) What will happen with the opening of trade to the Foreign country’s real wage in terms of cheese and wine? Briefly explainConsider the production productivity matrix of two goods from the US and India: United States of America India Labor force 200 800 Labor per unit corn 8 50 Labor per unit automobile 10 40 6. In India, how many units of corn is it willing to give-up to produce a unit of automobile? Group of answer choices 0.8 1.25 Both 0.8 and 1.25 Not enough data 7. The US, to achieve comparative advantage in producing a unit of corn, need to give-up how many unit(s) of automobile? Group of answer choices 0.8 1.25 Both 0.8 and 1.25 Not enough data(Comparative Advantage) Suppose that each US worker can produce 8 units of food or 2 units of clothing daily. In Fredonia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily. Why does the US have an absolute advantage in both goods? Which country enjoys a comparative advantage in food? Why?