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Q. "No country is abundant in everything." Discuss.
Answer: the idea of relative (country) factor abundance is (like factor intensities) a relative concept. When we recognize a country as being capital intensive, we signify that it has more capital per worker than does the other country. If one country has supplementary capital worker than another, it is an arithmetic impossibility that it also has more workers per unit capital.
Q. Why is it that North-South trade in manufactures look to be consistent with the results or expectations generated by the factor-proportions theory of international trade, where
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Q. Suppose E is fixed at E 0 and that the asset markets are in equilibrium. Suddenly output rises. What monetary measures keep the current exchange rate constant given unchanged e
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Q. "Trade liberalization could precede capital account liberalization." Discuss. Answer: It is probably true. The issue is associated to the theory of second best and
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