The country of pugelovia has an endowment total supply of

Assignment Help International Economics
Reference no: EM13374963

The country of Pugelovia has an endowment (total supply) of 20 units of labor and 3 units of capital, whereas The Rest of the world has 80 units of labor and 7 units of capital. Use the ratios of labor to capital and/or capital to labor in both countries to determine whether Pugelovia is labor-abundant or capital abundant. If car production is capital-intensive and cloth is labor-intensive, what is the Heckscher-Ohlin prediction for the pattern of trade between Pugelovia and The Rest of the world?

                                                                        Pugelovia                                            Rest of the world

Quanity of units of available Labor                            20                                                        80       

Qantity of of units of available Capital                        3                                                          7

Reference no: EM13374963

Questions Cloud

A tell me why you selected the appropriate exponential : a tell me why you selected the appropriate exponential smoothing method by commenting on your y data
Demand supply and the determination of market price1for a : demand supply and the determination of market price1.for a particular week in june three families - smith jones and
Several factors both internal and external impact a : several factors both internal and external impact a companys stock price and the subsequent perceived valuation of a
Nbspquestion 1 suppose the market for semiconductors in : nbspquestion 1 suppose the market for semiconductors in the u.s. is characterized byqd 200 -
The country of pugelovia has an endowment total supply of : the country of pugelovia has an endowment total supply of 20 units of labor and 3 units of capital whereas the rest of
A purely competitive wheat farmer can sell any wheat he : a purely competitive wheat farmer can sell any wheat he grows for 25 per bushel. his five acres of land show
The term bogo buy one get one also referred to as buy one : the term bogo buy one get one also referred to as buy one get one free has entered the urban dictionary and is a sales
1 i am risk avers and trying to maximize my expected value : 1. i am risk avers and trying to maximize my expected value of c0.5 were c is my fortune. i have 50.000 in cash and art
A five-forces industry analysis provides an overview of the : a five-forces industry analysis provides an overview of the potential profitability of the average firm in an industry

Reviews

Write a Review

International Economics Questions & Answers

  Estimate the value of a share

Sonora Company expects a three year comparative advantage period. Sonora's free cash flow during these three years are estimated to be $5 million, $7 million, and $9 million.

  Refer to either a current intermediate accounting text

Refer to either a current intermediate accounting text or a guide to current “generally accepted accounting principles.” Give at least one example for each of the four cells of Exhibit 9-1 (your instructor may desire to modify this problem).

  Identify one decision that made manager

JetSet Travel,  has been hugely successful in the distribution of stylish, comfortable shoes for travel. JTI sells its items to approximately 4000 retail accounts in the U.S. and a mix of independent distributors,

  That a rise in the terms of trade increases welfare

In some economies relative supply may be unresponsive to changes in prices. For example, if factors of production were completely immobile between sectors, the production possibility

  Discuss market price of any security

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.

  International market strategy - foreign direct investment

Foreign Direct Investment - Prepare a power-point presentation on Toyota's international market strategy.

  Explain that us bureau of labor statistics classifies people

The United States Bureau of Labor Statistics classifies people in the U.S. into three broad groups based on their employment status: those who are employed, those who are unemployed and those not in the labor force.

  What is the impact of opening trade on the real wage

Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good.a. According to the Heckscher-Ohlin theorem is Russia capital-abundant or labor-abundant?

  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.

  Arbitrage in goods markets1 what is the difference between

arbitrage in goods markets1. what is the difference between absolute and relative ppp? which theory requires fewer

  Should the airline replace its night flight from la

overnight is $1200 and would be zero in L.A. The airline is contemplating eliminating the ngiht flight out of L.A. and replacing it with a morning flight. The estimated number of passengers is 70 in the morning flight and 50 in the return afternoo..

  What is the level of gross national debt

The National Debt Try the following exercises to better understand how the national debt is related to the government's budget deficit a. Assume that the gross national debt is initially equal to $3 trillion and the federal government then runs a de..

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