QUESTION 5Question 3b- 2The Heckscher-Ohlin theory explains comparativeadvantage as the result of differences in countries:O Economies of large-scale production.O Relative abundance of various resources.O Relative costs of labour.O Transportation costs.

Hecksher-Ohlin theory is one of the international theories that is used to analyze the gain from…

Answered: Question 3b-2 The Heckscher-Ohlin…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 1SCQ: True or False: The source of comparative advantage must be natural elements like climate and mineral...

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True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
3. It has been argued that the Heckscher-Ohlin model defines comparative advantage as the outcome of variances in countries':a. Degree of technological sophisticationb. Relative richness of resourcesc. Labor costsd. Important production activities
Comparative Advantage 1. How do individuals evaluate opportunity costs to make business decisions? 2.what role does the production-possibility frontier (PPF) has in the decision-making process? 3. Explain how comparative advantage impacts a firm’s decision to engage in trade. 4.Would a business’s decision to trade cause a change to its PPF? Provide specific reasoning to support your claims.
ABSOLUTE ADVANTAGE & COMPARATIVE ADVANTAGE Q.6. An average worker in brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, whilst an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes. Who has the absolute advantage in coffee? Explain II. Who has the comparative advantage in coffee? Explain III. If the two countries specialize and trade with each other, who will import coffee? Explain
Qus4 If one person has the absolute advantage in producing both of two goods, then that person Group of answer choices cannot have a comparative advantage in either good should specialize in the production of both goods will have the comparative advantage in only one good cannot benefit from trade must also have a comparative advantage in both goods
a)What is: (not more than 3 sentences for each of them) Absolute advantage? Comparative Advantage? Heckser Ohlin Theorem? Difference of Heckscher Ohlin Theorem from Comparative advantage theory:
The bolded wording is the answer choices for the drop-down arrows it has 4 answer choices Euphoria's opportunity cost of producing 1 pair of jeans is a) 1/2 b) 1/4 c) 2 d) 4 of corn, and Arcadia's opportunity cost of producing 1 pair of jeans is a) 1/2 b) 1/4 c) 2 d) 4 of corn. Therefore, a) Euphoria b) Arcadia has a comparative advantage in the production of jeans, and a) Euphoria b) Arcadia and has a comparative advantage in the production of corn. Euphoria Trade Actions (Jeans) a) Exports 14 b) Imports 14 Trade Actions (Corn) a) Exports 42 b) Imports 42 Arcadia Trade Actions (Jeans) a) Exports 14 b) Imports 14 Trade Actions (Corn) a) Exports 42 b) Imports 42
4. Assume a two-country two-good two-input model. Let the countries in the model be Vietnam andMyanmar and the goods be shirts and natural gas. The two factors of production are labor and land.Further, Vietnam is labor-abundant and shirts production is labor-intensive. Suppose, in the absenceof trade, Vietnam operates at a point on its production-possibility curve where it produces andconsumes 20 units of shirts and 25 units of natural gas. Once it engages in free trade, the internationalprice of one unit of natural gas is .8 units of a shirt. In response to the opening of trade, Vietnammoves along its production-possibility curve to a new point where it produces 100 units of shirts and10 units of natural gas. Assume that with free trade, Vietnam chooses to consume 52 units of shirtsand chooses to trade all of its remaining surplus of shirts.a. Demonstrate the gains to trade for Vietnam.
A) Which producer has the comparative advantage in producing puzzles? Geppetto or Lewis B) Which producer has the comparative advantage in producing puppets? C) If both producers decided to trade with each other to stock their toy stores, which of the following is a range of terms of trade that would benefit both Geppetto and Lewis (1 puppet = x puzzles)? Please explain to me how to solve those questions. Don't just give me the answers. Thank you so much!
Opportunity Cost and the Gains from Specializ PPF Review Problems What is the opportunity cost of an extra calculator for Smith? What is the opportunity cost of an extra calculator for Jones? Who has the absolute advantage in computer production? Who has the absolute advantage in calculator production? Who has the comparative advantage in calculator production? Who has the comparative advantage in computer production? Jones 6 120
Assume that Trinbago is a small country that produces wine and motor vehicles, where motorvehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin(H-O) assumptions hold. The other country in the model is Vincyland.Could you assist with 2 graphs illustrating 1. The Hecksher Ohlin model based on the above this should show what the theory of comparative advantage stipulates 2. What trade pattern would occur if the Leontief Paradox holds how will this look graphically.
Draw the production possibility curve for each country using the data provided in the table. b. Which country has an absolute advantage in what product? Which country has a comparative advantage in what product? Show your work! c. Without trade, what is the price of food in terms of computers for both countries? Showyour work! d. What is the range of prices (i.e., the CPC) at which trade can occur? Also, show (a) the possible CPC for each country and (b) the possible production and consumption possibility lines for both countries after trade. Show your work!

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Question 3b-2 The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries: Economies of large-scale production. Relative abundance of various resources. Relative costs of labour.