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1. An increase in the index of intra-industry trade implies that there has been an increase in the country's exports in that industry.
2. In models of trade with monopolistic competition, consumers gain access to an overall larger number of varieties, but may end up with a lower number of domestically produced (or local) varieties.
3. The gravity equation predicts that there should be more trade between the United States and Canada than between the United States and Argentina. Give two reason to support your assertion. (HINT: Argentina's economy is roughly 25% the size of Canada's)
4. Traditional models of monopolistic competition (the Krugman model) are not a good representation of reality because they imply that all firm should export and all firms are the same size.
5. Assume that San Francisco (SF) does not trade with the rest of the Bay Area and the market for sourdough bread in SF is monopolistically competitive, each baker makes a differentiated sourdough and sets their own price.
Literature review covering the theoretical background and concepts, the topic of the paper, research on the country/organization especially including content from peer-reviewed research articles. Concepts such as entry mode, risks, potential for rewa..
Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below. What are your predictions
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Now assume that the two countries are engaged in Cournot competition in the steel export market. With this assumption, can you calculate the world price of steel if the world (inverse) demand for steel is given by p = 100 - X, where X is the total..
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Heuristics are usually identified as rules of thumb that we use when making decisions. We evaluate information we already know, events we have already experienced,
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What is the opportunity cost of producing rice in US??Confirm the existence of comparative advantage by computing opportunity costs and filling in the table below. What is the pattern of comparative advantage?
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