1. Hours of Labor Required to produce Cheese and Wine USA FRANCE Cheese 20 30 Wine 8 20 b. If the US is endowed with 1600 units hours of labor and France 3000 labor hours, how many cheese and wine will they produce after trade begins and why? Draw the PFF for both countries and show the post-trade production points. Explain.
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- Occasionally, a government official will argue that a country should strive for both a trade surplus and a healthy inflow of capital from abroad. Explain why such a statement is economically impossible.If the removal of trade banters is so beneficial to international economic growth, why would a nation continue to restrict trade on some imported or exported products?Explain what world trade means. What is the role ofthe Wto and economic communities in encouragingfree trade? What is the role of the World Bank and theInternational Monetary Fund in global trade? What isprotectionism? Explain import quotas, embargoes, andtariffs
- With complete specialization in trade, how much clothes and shoes will amazon produce? How much clothes and shoes will the facebook produce?Suppose you examine the bilateral trade flows between Northern Ireland and the Republic of Ireland , England, Scotland and Wales. Which bilateral trade flows do you expect to be larger?Select one:O. a. Between Northern ireland and EnglandO. b. Between Northern ireland and WalesO. c. Between Northern ireland and the Republic of Ireland O. d. Between Northern ireland and ScotlandImagine that it takes an average Australian miner 10 hours to mine a metric ton of coal and 20 hours to mine a metric ton of manganese. It takes the average South African miner 4 hours to mine a metric ton of coal and 12 hours to mine metric ton of manganese.Create a table to show how productive each miner is in a day. a. In what task does each miner have a comparative advantage? b. Which resource will each country import? How about export? c. Explain how markets provide the opportunity for the mining companies to specialize and earn gains from trade.
- In the attached diagram, which points represent the production specialization point and the trade solution point respectively in that order for the Foreign country? Candies 2000 1800 1600 1200 100 100 400 300 Teys O a. Point U and point G Ob. Point L and point G O. Point U and point R Od. Point Land point B Oe. Point G and point BSuppose that Egypt produces cotton and lamb, and that it has comparative advantage in cotton. Draw Eqypt's non-linear (i.e., concave) PPF and FTBL, with cotton on the horizontal axis and lamb on the vertical axis. Be sure to label the axes, the PPF, the FTBL and the autarky and free trade prices. Also show the quantities of imports and exports. (Note, there are no values for the prices, so just show the price ratio and how it's represented in the graph.)When does a country have a comparative advantage over producing a good? Explainwith examples.
- Suppose you examine the bilateral trade flows between Northern Ireland and the Republic of Ireland, England, Scotland and Wales. Which bilateral trade flows do you expect to be larger? Select one: O a. Between Northern Ireland and Wales Ob. Between Northern Ireland and the Republic of Ireland c. Between Northern Ireland and England Od. Between Northern Ireland and Scotlandee-trade benefits Ttion to the positive welfare effects that free trade has on an economy, there are a variety of other benefits of international trade ng scenario: Thout free trade, Sapphira has market power as a local producer. Once free trade is implemented in the local economy, Sapphira ger able to raise its prices above competitive levels. vious scer represents which of the following benefits of free trade? D An enhanced flow of ideas Increased variety of goods Increased competition Lower costs through economies of scale Grade It Now SavConsider the following data on two countries, A and B. A B Unskilled labor 72 million 540 million Skilled labor 60 million 300 million a. which country is skilled-labor abundant and why? b. which country is unskilled-labor abundant and why? c. now assume that product T is unskilled-labor intensive relative to product S, under free-trade equilibrium, which country will have a comparative advantage in the production of T?