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Given:
Assume that you are working in an automobile factory in your country that uses workers (labour) like yourself and capital to produce cars, and that this capital cannot be moved to cheese production that requires land and labour, but no capital. Only two goods, cars and cheese can be produced with these resources.
Required:
If relative prices of cheese were to increase in your country, what would be the impact on workers such as yourself and capital owners in your country, and why? Illustrate your answer by an appropriate diagram, applying your knowledge of the Specific-Factors model. Remember to state all assumptions behind this model
What is the slope of the budget line
Internalization - Operate in domestic market only and serve foreign markets through subsidiaries
An economy can be stimulated through printing more money. Determine the dangers of doing that? Inflation can be reduced by reducing the money supply.
Discuss and describe the difference between absolute advantage and comparative advantage. Determine the significance of each in international trade processes?
China and Japan have 2factors of production, land and labor. Both countries produce 2-goods, corn, which needs more land, and computers, which needs more labor.
Until the 25-century, Latin was the language used between the educated and within literature. Research and report on origins of vernacular language, and its spread.
Assume that on January 1, 1999 spot exchange rate was Yen/£=198. Over the year, British inflation rate was 4 percent, and the Japanese inflation rate was 6 percent.
The market for chicken sandwich, considered a normal good, is in equilibrium. Analyze the effect of the following events on equilibrium price and equilibrium quantity of chicken sandwich.
The nations of Figistan and Blah are small island nations in South Pacific. Both manufacture fruit and timber. Each island has a labor force of 1,200. The table listed below gives production per month per worker in each nation:
"Time" magazine, Canadian edition, has recently published an article on U.S. agricultural subsidies titled "Why our Farm Policy is Failing", November 2nd, 2007.
Doug Wyatt is a currency trader for Global Currency Exchange Corporation Wyatt has compiled the following data concerning the U.S. dollar or Australian dollar exchange rate.
In 1996, Kodak paid a cash dividend of $1.60 a share. At year-end 1996, Kodak shares were trading at about $80 each share. In 1997 and 2001, Kodak paid $1.76, & in 2002 increased its dividend to $1.80.
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