Balance of payments and mobility of labor & capital, Basic Statistics

Balance of Payments, Mobility of Labor and Capital, Trade and Wages

Balance of Payments

1. Will a country running a trade deficit import or export capital?  Explain.

2. Under what circumstances would a trade deficit be expected to raise a country's future income?  When would you expect it to lower a country's future income?

3. What connection, if any, is there between a country's demographic profile and international borrowing?

4. Singapore is a small open economy facing a fixed world interest rate that is above Singpore's autarky interest rate.  Suppose productivity in Singapore falls sharply.  What should happen to the quantity of investment, the quantity of savings supplied, and Singapore's current account?


5. We have a one good economy in which labor and land are used to produce food.   The ratio of land/labor is higher in Argentina than in Spain, and the technology for farming is the same in both places.

a. With no international mobility of labor, compare labor wages and the returns to land ownership in Argentina and Spain.

b. If migration is allowed, where should workers move, and how does this affect wages and land rents in both countries.

c. Show in a diagram how to measure the gains from migration in each country.

6. We have a two good economy in which capital and labor are used to produce capital-intensive cars and labor-intensive shoes.  China has a lower ratio of K/L than the US.

a. Use a relative supply relative demand curve to describe differences in factor prices across the two countries in autarky.

b. Describe three ways to arbitrage away these factor prices differences.  In each case,  show the effect using the RS-RD curve and describe the resulting changes in the production of cars and shoes.

7. How does the Rybczynski effect explain the effect of Cuban migration to Miami on unskilled worker wages?

Trade and Wages

8. What are the leading theories explaining the rise in the skill premium in the US?  Explain the channel through which the wages of skilled / unskilled workers are affected.

9. What has happened to the use of skilled labor relative to unskilled labor in the US?  How can a Heckscher-Ohlin model modified to include outsourcing explain this fact?

10. If trade is responsible for rising inequality in the US, do you think this is a reason to oppose further efforts to promote globalization?

Posted Date: 3/1/2013 8:14:44 AM | Location : United States

Related Discussions:- Balance of payments and mobility of labor & capital, Assignment Help, Ask Question on Balance of payments and mobility of labor & capital, Get Answer, Expert's Help, Balance of payments and mobility of labor & capital Discussions

Write discussion on Balance of payments and mobility of labor & capital
Your posts are moderated
Related Questions
formula for z test.

Gesto, Inc., has an issue of preferred stock outstanding that pays a $4.50 dividend every year, in perpetuity. If this issue currently sells for $79.85 per share, what is the requi

Suppose we wanted to compare the somatic complaints (as measured on a scale known as the Physical Symptom Survey or PSS) of three groups of people; nonsmokers, smokers, and people

What is an irrevocable letter of credit? A permanent mail of credit score is a financial instrument used by banks to guarantee a customer's obligations to a supplier. It is perm

The whole point of organizing data using SPSS software is so that we can manipulate the data to answer our descriptive and inferential questions.  This next section will walk you t

A contra-asset assessment consideration used to history the buildup of regular credit created to indicate the conclusion of the approximated useful life of investment resources.

Celia is a nurse in a geriatric ward.  She noticed that older persons in her care are having problems sleeping at night.  She decided to introduce non-pharmocologic ways of relaxat

AA major razor blade manufacturer advertises that its twin-blade disposable razor “gets you lots more shaves” than any single-blade disposable razor on the market. A rival company

Buildings solutions Permanent arrangements owned or held by the state. The cost of buildings includes both acquisition costs (historical cost, ancillary costs, and, for proprieta