Reference no: EM131015173
To answer the questions 1 and 3, first get the data and follow these steps.
1. Questions 1 and 3 require you to obtain data from Brazil and El Salvador.
2. In addition to the variables you obtained from the World Bank in doing Assignment 1 also obtain GINI index (World Bank estimate) from the World Bank's World Development Indicators for the years 1995-2012. (https://databank.worldbank.org/data/reports.aspx?source=world-development- indicators). [Note that if your browser (such as Google) does not open the webpage, try a different browser (such as Internet Explorer)]
3. Note that the GINI Coefficient is an index and not measured as a currency.
4. Note some observations may be missing for some years for GINI index. That is still OK, continue to select all years (including the missing ones) to do your calculations.
5. DO NOT attach Excel files to the assignment.
1. Using data from Brazil and El Salvador, calculate the correlation coefficient (using CORREL command in excel) between Openness and the GINI Index for each nation. Report and interpret this relationship in up to 100 words. [Hint: the GINI is often used as a proxy for the ratio of skilled to unskilled wages in empirical studies].
2. Using a diagram for substitutable inputs case, explain in up to 100 words the Stolper-Samuelson theorem.
3. Assume that both Brazil and El Salvador are unskilled-labour abundant countries. Based on your findings in Question 1, explain in up to 100 words whether your data agree or disagree with the Stolper-Samuelson theorem.
4. Consider the Ricardian model given in Question 3 of Assignment 1.
(a) Derive the relative demand curve relating the relative demand for Wallet to the relative price of Wallet. Do this algebraically, and then show what the curve looks like in a diagram (put the relative price of Wallet on the vertical axis and the relative quantity of Wallet on the horizontal axis).
(b) Derive the world relative supply curve of Wallet.
(c) Put in the same figure the relative demand curve for Wallet that you found in part (a) and the world relative supply curve of Wallet that you found in part (b). Determine the equilibrium relative price of Wallet and the equilibrium relative quantity of Wallet under free trade.
(d) Under free trade, which country produces which good(s)? How many units?
(e) Who gains from trade? Who loses from trade? State labours' stance towards free trade in each country.
Attachment:- International Trade.rar
|
Find the tangent line to given curves at the indicated point
: Find the tangent line to the following curves at the indicated points. 2(x2 + y2)2 = 25xy at the point (1, 2). x2 cos(y) + sin(2y) = xy at the point (-π, π)
|
|
How is the concept of cost of goods sold different
: How is the concept of cost of goods sold different than contribution margin? Explain the contribution margin concept/computation and when to use the information.
|
|
Estimate the proportion of days
: Assuming the group with the larger values is normally distributed, use your calculated mean and standard deviation to estimate the proportion of days that have more than 15,300 visits. Write a paragraph describing this set of data and the conclu..
|
|
How to start a new company data file in quickbooks
: What information is required before they set up a QuickBooks file? How to start a new company data file in QuickBooks (Easy Step Interview)?
|
|
Derive the world relative supply curve of wallet
: Derive the world relative supply curve of Wallet - Who gains from trade? Who loses from trade? State labours' stance towards free trade in each country.
|
|
How long after the drug has been administered
: The percent of concentration of a certain drug in the bloodstream x hr after the drug is administered is given by K(x) = 3x / (x2 + 25). How long after the drug has been administered is the concentration a maximum?
|
|
What problem does assigning cost to the wrong job cause
: Accountants want not to assign costs to the wrong jobs. What problem(s) does assigning cost to the wrong job cause? Why is an organization that has a long-run focus more likely to implement ABC than one that has a short-term focus?
|
|
Packaging of a new soap product
: A consumer products company surveys 30 shoppers at a mall and asks each one if he/she likes the packaging of a new soap product. The results of the survey are:
|
|
Could this raise some ethical issues
: A firm has spent some time-with input from managers at all levels--- in developing a vision statement and a mission statement. Over time, however, the behavior of some executives is contrary to these statements. Could this raise some ethical issue..
|