Government of a country imposes trade restrictions

Assignment Help Business Economics
Reference no: EM131523996

How are economies of scale, comparative advantage, and trade restrictions related?

1) If the government of a country imposes trade restrictions on the import of a certain good, the country will gain a comparative advantage in this good as well as economies of scale.

2) If a country has economies of scale in a good, its cost of production will increase, enabling the country to have an absolute advantage and become a world leader in trading this good.

3) If a country has economies of scale in the production of a certain good, the cost of production falls, causing the country to have a comparative advantage in that good.

4) If a country has a comparative advantage in producing a certain good, it gives rise to trade restrictions by the government, which leads to economies of scale.

Reference no: EM131523996

Questions Cloud

Compare characteristics of leadership and management : Explain how organizations function.Evaluate effectiveness of communications patterns using specific management situations.
Research and locate a current-events article : Research and locate a current-events article or video that, like the example article from Tulsa World, depicts ethical or unethical practices
Discuss what is the posterior probabilities : It is said that Napoleon assessed probabilities at the Battle of Waterloo in 1815. His hopes for victory depended on keeping the English and Prussian armies.
What is the expected capital gains yield : What is the current yield? What is the expected capital gains (or loss) yield for the coming year?
Government of a country imposes trade restrictions : If the government of a country imposes trade restrictions on the import of a certain good, the country will gain a comparative advantage.
Number of male customers : The manager of a Vancouver night club has observed that the number of male customers who visit the clubs follows as poisson distribution.
Should you drop your decision-analysis course : The problem is that you do not know how well you will do in the course. You can, however, assess a distribution for your score.
Discuss whether you believe the immunity provided : Discuss whether you believe the immunity provided is appropriate and also whether it unduly hinders the investigatory process.
Time from acceptance to maturity on banker acceptance : The time from acceptance to maturity on a banker’s acceptance (B/A) is 90 days. The importing bank’s acceptance commission is 1%.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Primary objective of government programs

If the primary objective of government programs in each of these areas is the alleviation of some market failure, how might they be better designed?

  Company in area of production-price and competition

What was Spindletop? Who were Pattillo Higgins and Capt. Anthony Lucas? How did Spindletop affect John D. Rockefeller’s Standard Oil Company in the area of production, price, and competition?

  The marginal ?revenue product

The marginal ?revenue product is:

  Use as first cost of the defender in a replacement analysis

Which of the following is the proper value to use as the "first cost" of the defender in a replacement analysis? The rate of return on an investment is the interest rate that is earned on the: Given an annual interest rate of 10%, when continuous com..

  Firms ability to organize and sustain a viable cartel

How does each of the following affect the firms’ ability to organize and sustain a viable cartel?

  What is the role of the project client and sponsor

Is project control different in an Agile project? What is the role of a project manager in controlling an Agile project? What is the role of the project client, sponsor, or customer at controlling project changes?

  Orecasters predictions inflation are notoriously inaccurate

Forecasters predictions of inflation are notoriously inaccurate, so their expectations of inflation cannot be rational.

  Economic reasons that led to this shutdown

Between October 1st and October 16th, 2013; the United States experienced partial Government Shutdown. In your view, what were the economic reasons that led to this shutdown? Is it likely for US to experience another shutdown in future?

  Currency of our northern neighbor

If we expect our currency to appreciate with respect to the currency of our Northern neighbor and the interest rates

  Restricted or relaxed current asset investment policy

Hardwig Inc. is considering whether to pursue a restricted or relaxed current asset investment policy. The firm's annual sales are expected to total $5,200,000, its fixed assets turnover ratio equals 4, and its debt and common equity are each 60% of ..

  Illustrate what is level of consumption at the equilibrium

Compute the equilibrium level of income. Illustrate what is the level of consumption at the equilibrium level of income.

  Business law ii click to accept

As people spend more and more time online, Click-to-Accept agreements have become increasingly common. Do people really read these types of agreements? Is it fair to hold consumers to these terms? Find an example of a case where a court did not enfor..

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