When a nation has a comparative advantage in producing a product, then in comparison with any other nation it can produce that product: O With less capital O With less labor At a lower domestic opportunity cost
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- 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?To determineThe ability of a country to produce a commodity with fewer resources.Trade between individuals and between nations leads to: O Increased specialization O Lower living standards Higher product prices Greater self-sufficiency
- When does a country have a comparative advantage over producing a good? Explainwith examples.a) Determine which country has a comparative advantage in each good . b) If Country A and Country B each have 100 units of labour , calculate the maximum production of each good for both countries .Consider two countries (Spain and Romania), two goods (textiles and cars), and two factors of production (skilled and unskilled labor). Romania is relatively abundant in unskilled labor, and textiles are relatively intensive in the use of unskilled labor. Both countries use the same technologies. (a) Which groups will be in favor of free trade in both countries? (b) What will happen to income distribution in Spain and Romania after free trade? (c) HowdoesfreetradeaffecttheincentivesofSpanishworkerstoacquireskills? (d) Assuming such high tariffs that goods are non-tradable, which group will be in favor of free migration? (e) Do you consider allowing labor mobility as a close substitute to free trade?
- I need help solving this problem in economics Worker Wage Time to complete 1 unit Paneling Dry Wall Al ($9/hr) 6hrs 4hrs Ken ($10/hr) 5hrs 5hrs Given Ken’s current comparative advantage, how much faster would Ken have to produce the alternative product to switch comparative advantages with Al?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!Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523 units of Food or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5000. (d) Which country has the comparative advantage in food? In fuel? Explain. (e) Which good(s) should each country specialize in?
- Suppose that the opportunity-cost ratio for fish and lumber is 1F ≡ 1L in Canada but 2F ≡ 1L in Iceland. Then should specialize in producing fish while should specialize in producing lumber. a. Canada; Iceland. b. Iceland; Canada.Suppose there are two countries Peru and Japan that produces 7,523 units ofFood or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5,000. d) Which country has the comparative advantage in food? In fuel? Explain. e) Which good(s) should each country specialized in?Are the following statements true or false? Explain ineach case.a. “Two countries can achieve gains from trade evenif one of the countries has an absolute advantagein the production of all goods.”b. “Certain talented people have a comparativeadvantage in everything they do.”c. “If a certain trade is good for one person, it can’tbe good for the other one.”d. “If a certain trade is good for one person, it isalways good for the other one.”e. “If trade is good for a country, it must be good foreveryone in the country
