Factors associated with exposure to international trade, International Economics

Assignment Help:

Q. Consider, as a result of several dynamic factors associated with exposure to international competition, Albania's economy grew, and is now shown by the rightmost production possibility frontier in the Figure above. If its point of production with trade was point b, could you consider this growth to be export-biased or import biased? If Albania were a large country due respect to the world trade of A and B, how could this growth affect Albania's terms of trade? Its real income? What if Albania were a small country?

Answer: If the production along with trade point was point b after that the observed growth is a case of import-biased growth and would improve Albania's terms of trade. If Albania were a petite country the world's terms of trade wouldn't change at all. In such a situation economic growth without induced change in income distributions would always increase its real income.


Related Discussions:- Factors associated with exposure to international trade

Effects of the reunification of eastern and western germany, Q. Discuss the...

Q. Discuss the effects of the reunification of eastern and western Germany in 1990 on both Germany and its neighboring European countries. Answer: Germany rumbles high interest

Haberler, Opportunity cost theory

Opportunity cost theory

What is the fisher effect?provide an example, What is the Fisher Effect?  P...

What is the Fisher Effect?  Provide an example. Answer: All moreover equal a rise in a country's expected inflation rate will ultimately cause an equal rise in the interest rat

Offer Curve.., How to derive offer curve and its difference from reciprocal...

How to derive offer curve and its difference from reciprocal demand curve

Treflers case of missing trade, Q. The Heckscher-Ohlin model is famous for ...

Q. The Heckscher-Ohlin model is famous for being elegant and mathematically sophisticated, yet failing to define reality. One manifestation of this fact is Trefler's Case of Missi

Law of demand, Explain the law of demand. Briefly discussed the exception t...

Explain the law of demand. Briefly discussed the exception to the law of demand

External economic environment, The hospital, as an open system, affects and...

The hospital, as an open system, affects and is affected by the surrounding environment; it is incumbent on staff to monitor and continuously track the variables contained in order

Study the effects of a change in market, Q. Use a figure to study the effec...

Q. Use a figure to study the effects of a change in market belief with regard to the fixed exchange rate, in particular assume market participants expect the government to devaluat

Discuss the costs and benefits of fdi to host country, Q. Discuss the costs...

Q. Discuss the costs and benefits of FDI to host country? Benefits to host country Availability of scarce factors of production Improvement in the balance of payment Strengthen

Effects of 9/11 on the size of the eurocurrency markets, Q. What do you exp...

Q. What do you expect would be the effects of 9/11 on the size of the Eurocurrency markets? Answer: Will increase because of fear that foreign deposits in the United States wi

Write Your Message!

Captcha
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