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1- What are the limits of the terms of trade? Specifically, when is Canada willing to trade with Japan, and when is Japan willing to trade with Canada?
2- Which country has the absolute advantage in beef production?
3- Which country has the absolute advantage in computer production?
4- Which country has the comparative advantage in beef production?
5- Which country has the comparative advantage in computer production?
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:
It is conventional to divide the nation's total production into four categories. Name and explain the four categories. In the United States, which category accounts for the largest share and the smallest share of the nation's total production.
Discuss the pros and cons of firms competing in global environment and how this has affected the United States economy and the global economy?
Explain the activities of multinational corporations (MNC) by applying the classical trade theory and analyze the welfare effects of trans-border flows of labor (migration)
Identify and discuss any two modern day events that illustrate interconnections between countries. Be sure to be specific about the events, and clearly explain ways in which such events evidenced the interconnections between countries.
It has been discussed that a nation to international trade is a great antitrust policy. Determine what impact would threat of imports have on a monopolist who had never before been faced in foreign competition?
Assume that a country declares that it is moving toward free trade through decreasing its tariffs on intermediate inputs while maintaining its tariffs on final goods.
Suppose two open economies A and B. In this economy only one good is manufactured for time t = 0 and price P(0,A)=1 Dollar and P(0,B) = 1,5 Euro.
Fred Smith of Dodge City Bank has received many loan applications from local small businesses. The applications are supported through many documentation, including the business plans of the companies.
For the U.S. perspective, imports are the goods produced by foreigners, imported to the U.S., and consumed by Americans. Exports are the goods produced by Americans, exported to other countries, and consumed by foreigners. U.S. GDP does not includ..
Suppose the economy is at a position below the physical production possibilities frontier but above the institutional production possibilities frontier. In response to this situation, Keynesian economists would propose that government enact.
The world price of wine is below the price that would prevail in the United States in the absence of trade. a.) Assuming that American imports of wine are a small part of total world wine production, draw a graph for the U.S. market for wine under ..
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