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In some economies relative supply may be unresponsive to changes in prices. For example, if factors of production were completely immobile between sectors, the production possibility frontier would be right-angled, and output of the two goods would not depend on their relative prices. Is it still true in this case that a rise in the terms of trade increases welfare? Analyze graphically.
Suppose foreigners spend $7 billion on U.S exports in a specific year and Americans spend $5 billion on imports from abroad in the same year, what is the amount of the United States net exports
Suppose if the U.S. productivity growth does not keep up with that of its trading partners, the U.S. will quickly lose its international competitivesness and not be able to export any products, and its standard of living will fall.
Describe some models that forecast the effect that decreasing protection Tariffs will have on factor prices Labour and capital?
Snookie, a Jersey Shore Girl, wants to work at Disney's African-themed resort in the African village as a salesperson selling "native" artifacts to the tourists. Disney, however, says that in order to work in a customer-contact position at this pa..
Right now many economies around the world are growing much faster than the United States. That means that the gross domestic product (GDP) of countries like China, India, Brazil, and Russia is increasing every year at a faster rate.
What are some relative advantages and disadvantages of using smaller local partners vs a large local partner and are there countries where Microsoft's strategy might not work
Questions based on International Business
The federal reserve arranges to make lonas to a banks automatically whenever an economic down-turn beginsB.) As the economy heats up, the resulting increase in equilibrium income immediately results
Suppose if you were economic adviser to a nation that was following your advice about trade restrictions and that nation fell into a recession, would you change your advice?
Consider an increase in U.S. investment demand. Draw a complete and fully-labeled diagram of the open-economy macroeconomic model to illustrate your answer. What happens in the market for loanable funds, to net capital outflow, and in the market f..
Describe unequivocally why the foundation of trade has nothing to do with absolute advantage and only law of comparative advantage is relevant.
As a treasurer of a large United State corporation, you must decide how best to manage the company's cash flows to maximize profits, subject to maintaining an acceptable level of risk.
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