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if unit labor costs in Spain and Portugal rise, but unit labor costs in Germany decline and other producer prices remain unchanged, what effect should these factors , by themselves, have on export trade, and why?
In 1981, the United State negotiated a contract with the Japanese. The contract called for Japanese auto firms to limit exports to the United State.
If you were President of the US and you were making decisions on trading, would you rather have a comparative or absolute advantage in trading If so, what if at all would be the benefit for your country to trade with any other country
The United States Postal Service has a monopoly on non-urgent First Class Mail and the exclusive right to put mail in private mailboxes. Pfizer Inc. makes LIPITOR, a prescription drug that lowers cholesterol. Cox Communications is the sole provide..
Describe the increasing returns to scale as a basis for international trade. Be sure that you discuss the relevant concepts, explain important features of such trade,
Assume that in England five man hours of labor are needed to make each cask of wine and five man-hours are needed to produce each bolt of cloth,
Construct a table indicating the social expected loss corresponding to each combination of precaution choices by the two individuals and what is the socially efficient combination?
Develop a detail paper analyzing Intra-Industry International Trade. Your paper should be APA format and structured as follows
Explain the concept of comparative advantage and the principle theories of why trade occurs and analyze and discuss the sources of comparative advantage in national economies.
A contractor for the U.S. Defense Department produces airplanes from capital (K) and labor (L) by the production function: A = K times L 2 The marginal product of labor (MPL) = 2KL. The marginal product of capital (MPK) = L 2 .
From the same problem, suppose monetary expansion in the US caused all prices in the US to increase by 50%, so the turkey would be 45 US dollars, then what would happen to the exchange rate.
The government institutes a tariff of 100. The drives the terms of trade price down to 120. Compared to free trade, what happens to total surplus when the tariff is put into place?
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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