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For a world in which international trade would be according to the differences featured in the Heckscher-Ohlin theory, the shift from no trade to free trade is like a zero-sum game." Do you agree or disagree? Why?
The Ricardian model emphasizes on theory of comparative advantage, viewed to be the most important concept in international trade theory. In a Ricardian model, countries specialize in producing what they produce best.
The Heckscher-Ohlin theory states that countries should produce and export goods that require resources (factors) that are abundant and import goods that require resources in short supply.
The latter theory was an alternative to the former model of comparative advantage. However, Heckscher-Ohlin did not provide accuracy in its forecasts. Despite that it did present a remarkable solution from the theoretical point of view by adopting neoclassical price mechanism into the International Trade Theory.
It may be borne in mind that 'demand plays a pivotal role so far the determination of equilibrium composition of output is concerned'.
Describe the meaning of efficient markets. Why might we expect markets to be efficient most of the time?
The firm produces a global positioning system that sells for $1,000 with costs of goods sold of 48 percent of sales. Compared to the US, China offers a 6 percent cost reduction
The Microsoft trial has been one of biggest investigations of antitrust behavior since turn of the century. Supporting the governments side research and present a cohesive argument to the other side.
Many people think of marketing as only promotion; they only look the tip of the marketing iceberg. However, marketing is much more.
Suppose last year's real GDP was $7,000 billion, this years nominal GDP is $8,820 billion, and GDP-deflator for this year is 120. Determine the growth rate of real GDP?
Based on government report, the U.S. can manufacture 3-computers or 3,000 cases of win with one unit of resources, while Germany can manufacture one computer or 5,000 cases of whine with one unit of resources.
In the IS-LM curve model, examine the effect of an autonomous rise in saving that is matched by a drop in consumption, describe which curve would shift?
I am an advisor to United State Federal Trade Administration in charge of doing background research that will be used for trade negotiations by policy makers. Discuss advantages and disadvantages of expanding NAFTA.
Suppose If factor-intensity reversals were indeed prevalent in the real world, how might this fact be used to describe the Leontief paradox?
As a seller of data to customers in Brazil, suppose you are an exporter and you periodically buy advertising space on Brazilian Web sites to advertise your service;
The demand for money in a country is given by, Assume that the money supply is set by the central bank at $1,198,000. Determine the equilibrium interest rate.
The US maintains a large trade deficit with China. The debt is largely due to China's artificially undervalued currency. Should the actions of the Chinese government be considered through trade-governing officials?
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