What is the marginal rate of transformation impact

Assignment Help International Economics
Reference no: EM131137278

Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil can produce 100,000 units of clothing per year and 50,000 cans of soda. The United States can produce 65,000 units of clothing per year and 250,000 cans of soda. Assume that costs remain constant. For this example, assume that the production possibility frontier (PPF) is a straight line for each country because no other data points are available or provided. Include a PPF graph for each country in your paper. Chapter 5 of the Suranovic text is a good reference for this task.

Complete the following:

• What would be the production possibility frontiers for Brazil and the United States?
• Without trade, the United States produces AND CONSUMES 32,500 units of clothing and 125,000 cans of soda.
• Without trade, Brazil produces AND CONSUMES 50,000 units of clothing and 25,000 cans of soda.
• Denote these points on each COUNTRY's production possibility frontier.
• Using what you have learned and any independent research you may conduct, which product should each country specialize in, and why?

To assist in your thinking and discussion, additional questions to consider include:

• What is the labor-intensive good?
• What is the Marginal Rate of Transformation impact?
• What is the labor-abundant country?
• What is the capital-abundant country?
• Could trade help reduce poverty in Brazil and other developing countries?

Reference no: EM131137278

Questions Cloud

How will you go about sampling this population : How will you go about sampling this population? Discuss how you will measure your dependent variable and the procedures you will use to conduct the experiment
Use this method to fit a parabola : The regression models that we introduced in Sections 2 and 6 are linear in the x's, but, more important, they are also linear in the β's. Indeed, they can be used in some problems where the relationship between the x's and y is not linear. For in..
What do the majority of men do at home after work : Why do you think domestic responsibilities continue to be divided unequally between men and women - and what do you think could bring about a change in this situation (on either the micro, middle, and/or macro level of society)?
Discuss the video content in relation to career counseling : Discuss the video's content in relation to career counseling. Be sure to include terminology from both the textbook and your chosen video in your post
What is the marginal rate of transformation impact : What is the Marginal Rate of Transformation impact? What is the labor-abundant country? What is the capital-abundant country? What would be the production possibility frontiers for Brazil and the United States?
Determine the present value in year 0 of the following cash : Determine the present value in year 0 of the following cash flows using a periodic interest rate of 9% compoundedannually:
Estimate the shear and moment at each end of beams : Estimate the shear and moment at each end of beams IJ and JK -  analyzing the second-floor beams and the attached columns
Used in some problems where the relationship : The regression models that we introduced in Sections 2 and 6 are linear in the x's, but, more important, they are also linear in the β's. Indeed, they can be used in some problems where the relationship between the x's and y is not linear. For in..
How you would move forward with the teen : Also, discuss in your post how you would move forward with the teen and his family to address any concerns that may arise about the teen's success in finding an appropriate job or vocational training placement

Reviews

Write a Review

International Economics Questions & Answers

  What will be the effects of an increase in the money supply

What will be the effects of an increase in the money supply

  Questions based on international business

Questions based on International Business

  calculate the series for nominal gdp

Calculate and Plot using a spreadsheet (like Ms Excel) the series for Nominal GDP

  Burger king beefs up global operations

Burger King Beefs Up Global Operations

  Consider two countries that share the same technology

Consider two Countries that share the same technology, South Africa and the UK, and two goods, Diamonds and Tea

  Find best the governance system of the eu

Which political system describes best the governance system of the EU? Is the governance system of the EU democratic? Why ‘yes', or why ‘not'?

  Review the country political economy

Political Economy and Foreign Direct Investment - Review the country's political economy

  Calculate the value of the intraindustry trade

Calculate the value of the Intraindustry Trade

  Identify the funding mechanism of the project

Identify the funding mechanism of the project, and the sources of funding. Identify the key players or stakeholders of the project. Who is supposed to benefit from the initiative?

  Alternative trade: legacies for the future

explain how  Alternative Trade: Legacies for the Future  supports or challenges your conceptualizations of trade and development. Are there themes that some of you agree upon? Do you disagree on others? Describe your conversation.

  Find the equilibrium interest rate

The consumption function is given by C = 200 + 0.75(Y - T ). The investment function is I = 200 - 25r, r is the real interest rate. Government buy and taxes are both 100.

  Country economic and trade summary reports

Global marketing managers must understand economics and trade rules of countries and regions within which they trade.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd