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

Explain integration of international trade, Explain Integration of Internat...

Explain Integration of International Trade and Foreign Investment

How does fall in real interest rate affect consumption, Q. Consider the eco...

Q. Consider the economy is initially consuming along the intertemporal budget constraint at point A, where no saving occurs. How does a fall in the real interest rate, r, and affe

Analyze effects of an increase in the european money supply, Q. Analyze the...

Q. Analyze the effects of an increase in the European money supply on the dollar/euro exchange rate. Answer: The major points are: A raise in the European money supply will re

Homeowork 1, Canadian consumers have 50 dollar in come this is eual to the ...

Canadian consumers have 50 dollar in come this is eual to the gross domestic product. they spand 35 dollars on comuser goods (25 on canadian goods annd 10 on imports) they save 8

Apparent lack of national consistency on this issue, Q. The United States ...

Q. The United States seems at times to have a totally schizophrenic attitude toward protectionism. The United States was the country that proposed the establishment of the World

International trade, why is international trade important for south africa

why is international trade important for south africa

What is necessary condition for international trade, Q. One reason interna...

Q. One reason international trade has a powerful effect on the distribution of income within countries is that some factors are "specific", and therefore cannot move costlessly fr

Exchange rate determination, Q. Describe the chain of events leading to exc...

Q. Describe the chain of events leading to exchange rate determination for the following cases: 1. An increase in the U.S money supply 2. An increase in the growth rate of the

Floating exchange-rate regime, Q. Why would you suggest to a govern...

Q. Why would you suggest to a government to use a floating exchange-rate regime? Answer: Floating Exchange Rate is an exchange rate in which central banks don't inter

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