The table below shows the monetary value of the production of gems and steed respectively in the calendar year of 2019 for thhe nations of Turkey and Zimbabwe. Use it to answer questions regarding a possible trade scenario between the two nations. Year-2019 Gems in billions of USD Steel in billions of USD Zimbabwe 1 0.2 Turkey 7. 10 Which of the nations has an absolute advantage in terms of the production of gems?

The table below shows the monetary value of the production of gems and steed respectively in the calendar year of 2019 for thhe nations of Turkey and Zimbabwe. Use it to answer questions regarding a possible trade scenario between the two nations. Year-2019 Gems in billions of USD Steel in billions of USD Zimbabwe 1 0.2 Turkey 7. 10 Which of the nations has an absolute advantage in terms of the production of gems?

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 1CQQ

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Similar questions

Describe a scenario in which a trade surplus benefits an economy and one in which a trade surplus is economy in an economy that performs poorly. What key factor or factors are making the difference in the outcome that results from a trade surplus?
Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States?
If opening up to free trade would benefit a nation, then why do nations not just eliminate their trade barriers, and not bother with international trade negotiations?
Trade has income distribution effects. For example, suppose that because of a government-negotiated reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells house paint to the Czech Republic. The Czech Republic sells alarm clocks to Germany. Would you expect this pattern of trade to increase or decrease jobs and wages in the paint industry in Germany? The alarm clock industry in Germany? The paint industry in Czech Republic? The alarm clock industry in Czech Republic? What has to happen for there to be no increase in total unemployment in both countries?
How do trade barriers affect the average Income level in an economy?
Occasionally, a government official will argue that a country should strive for both a trade surplus and a healthy inflow of capital from abroad. Is this possible?
If countries reduced trade barriers, would the international flows of money increase?
What do international flows of capital have to do with trade imbalances?
If the removal of trade banters is so beneficial to international economic growth, why would a nation continue to restrict trade on some imported or exported products?
If trade barriers hurt the average worker in an economy (due to lower wages), why does government create trade barriers?
In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?