Which good is exported and which good imported

Assignment Help Business Economics

Reference no: EM131002970

Consider the specific factors model we discuss in class. Suppose that when the Home country opens up to trade, the price of the M good relative to the A good decreases. In our class, we assume that this relative price increases.

1. Which good is exported and which good imported? Why?

2. How does the opportunity cost of the M good change, going from closed economy to free trade? Why?

3. Explain why the overall gains from trade are still positive.

Reference no: EM131002970

Questions Cloud

What is the interpretation of each parameter : You are concerned about the damage that automobile pollution is causing our nation’s environment and are interested in the effect that gasoline prices have upon gasoline consumption. Specify your economic model as well as your econometric model of ga..

What are the reserve-deposit ratio-currency-deposit ratio : In the economy of Panicia, the monetary base is $1,000. People hold a third of their money in form of currency (and thus two-thirds as bank deposits). Banks hold a third of their deposits in reserve. What are the reserve-deposit ratio, the currency-d..

Conflicting political economic perspectives exist : Conflicting political economic perspectives exist between many nations. Using the United States , Japan, and the former Soviet Union as examples, describe how each nation views capitalism and name at least 2 policy tools used by each to advance their..

Solve using tabulated factors : The CFO of Marta Aarana Cement Industries knows that many of the diesel-fueled systems in its quarries must be replaced at an estimated cost of $20 million 10 years from now. A fund for these replacements has been established with the commitment of $..

Which good is exported and which good imported : Consider the specific factors model we discuss in class. Suppose that when the Home country opens up to trade, the price of the M good relative to the A good decreases. In our class, we assume that this relative price increases. Which good is exporte..

What are the five parts of the marketing plan : What are the 5 parts of the marketing plan. Do you believe the marketing plan is critical to the success of a business? Why/Why not?

The motor carrier act : The Motor Carrier Act of 1980 resulted in:

How much money must be invested in an account : How much money must be invested in an account that pays 6% per year interest to be worth $20000 at the end of 8 years of (forgetting the leap years and making "convenient" assumptions) : annually

Are the initial old better off with more units of fiat money : Consider an economy with a constant population of N = 100. Individuals areendowed with y = 20 units of the consumption good when young and nothing when old. Suppose instead that the initial old were endowed with a total of 800 units of fiat money. Ho..

User Account

All Pages