### Describe absolute and comparative advantage

Assignment Help International Economics
##### Reference no: EM1375298

Suppose that with a given unit of labour, India can manufacture 40 basketball hoops or 60 basketballs and Nepal can manufacture 10 basketball hoops or 30 basketballs. This scenario is illustrated below.

output
hoops (H) balls (B)
India 40 60
Nepal 10 30

a.) Describe absolute and comparative advantage for India and Nepal.

b.) If each country has 1000 person-days of labour, construct each country's production-possibility curves.

c.) If Nepal wants to consume equal amounts of both goods (as many units of hoops as balls), how much of each good will be produced and consumed if there is no trade between the two countries?

d.) Assume that the equilibrium terms of trade are 1H=2B. If Nepal still wants to consume equal amounts of both hoops and balls, show its points of production, consumption, and the amounts of exports and imports.

e.) Show the gains from trade for Nepal.

#### Discusses the impact of indias economy on the united states

After completing your assigned reading for the module, prepare a 1-2 page paper that discusses the impact of India's economy on the United States and other current world eco

#### Calculate the value of call option on the pound

Suppose that the spot value of the British pound is \$1.55, the annualized thirty day sterling interest rate is 10 percent, the annualized 30-day U.S. interest rate is 8.5 perc

#### How would a substancial appreciation in the european euro

how would a substancial appreciation in the european euro in the foreign exchange market affect the quantity of imports of European products by the US How would such an appr

#### Explain how does affect the price of corn in kenya

The US Government is helping farmers by subsidies onusing corn to produce methanol, which makes gasoline with ethanol less expensive than regular gasoline. There is a drough

#### How the federal govt balance its budget annually

Some politicians have suggested that the U.S. enact a constitutional amendment requiring that the federal govt balance its budget annually. Explain why such an amendment, if

#### What challenges did germany face growing up

1. What challenges did she face growing up 2. Why is she famous 3. What is her legacy in the modern world If you know any/all that would be great 3- what are her insecuritie

#### What is the opportunity cost of a pot holder

Who has a comparative advantage in the production of wristbands and for Kristen and for Anna, what is the opportunity cost of a pot holder? Who has a comparative advantage in

#### Describe the problem of us implications for bio-diversity

Describe the problem of U.S. wetlands loss and the implications for bio-diversity. Briefly contrast how a command and control policy approach would differ in intent and impl