Models associated with post-heckscher-ohlin trade theory

Assignment Help Business Economics

Reference no: EM13893245

Present in detail the following two theories/models associated with “post-Heckscher-Ohlin” trade theory. In the case of each theory/model, be sure to indicate important characteristics of real-world international trade that the theory/model is attempting to explain.

(a) the product cycle theory

(b) the Krugman theory/model with economies of scale and monopolistic competition

Reference no: EM13893245

Questions Cloud

Define five types of possible net or overall effects : Define the five types of possible “net” or “overall” effects of the country’s growth on the importance of the trade sector and indicate which types would, other things equal, lead to a deterioration of the growing country’s terms of trade (assuming t..

Define five types of production effects of economic growth : Define the five types of “production effects” of economic growth in a country and the five types of “consumption effects” of the economic growth. Then define the types of possible “overall” or “net” effects of the country’s growth on the relative imp..

Analyze welfare implications of growth in neoclassical model : Why is it difficult to analyze the welfare implications of growth in the neoclassical model? What proxy is often used to reach a conclusion about the effects of growth? What leads to the conclusion that, if welfare is to improve with growth in the la..

What combination of trade effects is sufficient : In recent decades, trade has been growing faster than income for many countries. What combination of trade effects is sufficient for this to come about? Is this behavior consistent with the Rybczynski theorem? Under what circumstances?

Models associated with post-heckscher-ohlin trade theory : Present in detail the following two theories/models associated with “post-Heckscher-Ohlin” trade theory. In the case of each theory/model, be sure to indicate important characteristics of real-world international trade that the theory/model is attemp..

Define intra-industry trade and indicate several reasons : Define “intra-industry trade” and indicate several reasons why such trade can take place in any given product category. Then indicate the characteristics of a country that might lead you to expect that the country would have a substantial amount of i..

Intra industry trade than is typical developing country : Why might it be hypothesized that a typical developed country is likely to have a greater relative amount of intra-industry trade than is a typical developing country? Explain.

Explaining trade between developed-developing countries : Suppose someone stated that the Heckscher-Ohlin model is best-suited for explaining trade between developed countries and developing countries, while newer theories such as those of Linder and Krugman are best-suited for explaining trade among develo..

Determine relative factor abundance across countries : If economists wish to determine relative factor abundance across countries, why don’t they simply calculate w/r ratios across countries and then compare these ratios?

User Account

All Pages