Australia has an absolute advantage over South Africa in wool production if, during a year, Australia: Can produce more wool than South Africa. Specialises in wool pproduction. Can produce less wool than South Africa. Can produce more wool than South Africa with a given amount of resources. Consumes more wool than South Africa on average.
Q: The volume of international trade: Has increased dramatically in the last few decades. Has…
A: International trade: It refers to the interchange of goods and services between two or more…
Q: If wages in New Zealand are higher than in China, Select one: a.trading with China will hurt New…
A: International trade between individuals, businesses, and nations is essential to a contemporary…
Q: Which of the following statements is NOT true? Group of answer choices In a two-good market, a…
A: If the domestic price of a good is less than the world price of the good then a nation is going to…
Q: What is the differences of: 1. Headquarters of multinational 2. Home country subsidiaries of foreign…
A: Multinational corporations operate in 2 or 3 countries whereas domestic companies restrict their…
Q: If the fictitious country of Islandia puts all of its production resources into fish, it can produce…
A: Disclaimer :- since you asked multipart question we are solving only first 3 subpart of the…
Q: Trade between nations can be mutually beneficial if one country has a monopoly. an absolute…
A: When two countries are involved in an international trade there are always gains from trade.
Q: The principal concept behind comparative advantage is that a nation should maximize its volume of…
A: When a country sells its goods and services to other countries, then these goods and services are…
Q: A country will have comparative advantage, accounting to Ricardo (A) industries that sell to…
A: Meaning of Exchange Rate: The term exchange rate refers to the situation under which a particular…
Q: 23.what would the equilibrium be if the Soviet Union moved first? Group of answer choices (a) Both…
A: We can find out the equilibrium using the background induction.
Q: Q31 Economies of scale and product differentiation can provide an explanation for... a. Absolute…
A: Intra industry trade: - Intra industry trade is the type of international trade in which a country…
Q: The existence of absolute advantage Multiple Choice implies that there will be no benefits from…
A: Absolute advantage and comparative advantage are two different economic terms used in international…
Q: When both countries shift production toward each of their comparative advantages: Their combined…
A: When an economy engages in a more open international trade of goods and services with other…
Q: Question 15 Which of the following statements is correct? Two countries can gain from specialization…
A: Option A is correct. Option D is incorrect as gains from trade is based on comparative advantage…
Q: MNCs from emerging markets (India, China, Brazil) are beginning to challenge the dominance of…
A: The production and selling of goods and services between countries is known as global business, or…
Q: Alice is the global marketing director for a multinational electronics manufacturing firm. She is…
A: International trade is exchange resources ( natural , humans , ideas , technology etc ) from one…
Q: Answer in 5 sentences each questions. 1. What would happen to a country if they limits the…
A: Answer-
Q: An economic boom in the United States will tend to cause booms in other countries because as U.S.…
A: Exchange rate refers to the amount of domestic currency that required to purchase one unit of…
Q: If you are the manager of a export firm, in order to achieve business diversification, you should…
A: Diversification in a market refers to the situation when people have the opportunity to deviate from…
Q: You are the manager of the only firm worldwide that specializes in exporting fish products to Japan.…
A: No, the first instinct to call the trade representative of country to lobby against the import quota…
Q: Leontief was trying to test which theory of International Trade, when he discovered what became…
A: In economics, a paradox refers to the situation when a finding of an economic theory or model…
Q: nation's ability to produce a product more efficiently than another country is referred to as…
A: When the two countries are open to free trade there are always gains from trade.
Q: International business is explained by many International trade and investment theories. Do you…
A: Answer: In the above illustration, there are two countries, China and Bangladesh, China’s…
Q: What is the cost ratio of capital goods to consumer goods in Germany? What is the cost ratio of…
A: This question is from the comparative advantage theory of International trade. Cost ratio can be…
Q: Explain the following in detail with suitable examples. Absolute Advantage Comparative Advantage…
A: Absolute Advantage In financial aspects, the rule of absolute advantage alludes to the capacity of…
Q: The law of comparative advantage in trade typically applies only to trade between nations and favors…
A: Comparative advantage is when one party can produce goods with lower opportunity cost. Now this…
Q: Comparative advantage is the... a. Gains from international trade. b. Ability of one region to…
A: Comparative advantage is the basis of goods and services traded in the international market.
Q: It is often asserted that the United States no longer manufactures anything, and that instead it…
A: United States no longer manufactures anything Manufacturing in the United States is a vital sector.…
Q: The principal concept behind comparative advantage is that a nation should maximize its volume of…
A: When an economy opens up its trade boundaries to make exchanges with other countries, it uses…
Q: Trade need not be the result of comparative advantage but it can be a result of economies of scale.…
A: Comparative Advantage: The comparative advantage exhibits to the economic situation where an economy…
Q: Gains from trade come from: Excessive negotiations. Specializing in one’s comparative advantage.…
A: The emergence of globalization allowed countries to trade with each other. The countries exchange…
Q: It has been shown that the US has comparative advantage in capital-intensive goods while China has…
A: The ability of an economy for producing a specified good or service at a lower cost of opportunity…
Q: What are Australia’s opportunities in global value chains (GVCs) in Asia Pacific focusing on GVCs in…
A:
Q: You are an employee of a U.S. firm that produces personal computers in Thailand and then exports…
A: According to question given, You work for a company in the United States that manufactures personal…
Q: Emerald Island has a climate that is suited to banana production and yields 840 pounds per acre.…
A: We will look into the concept of opportunity cost in this case.
Q: If Big Macs were a durable good that could be costlessly transported between countries, which of the…
A: An arbitrage opportunity, in economics, the existence of one good being traded at two different…
Q: The empirical evidence covered in the lecture supports the view that the US China import tariff…
A: Import tariff In this graph the equilibrium of demand and supply is achieved when the local firms…
Q: a) sen What is: (not more than 3 sentences for each of them) Absolute advantage? Comparative…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Explain which product each of the countries should specialise in and export. Use the information…
A: The theory that states that there exists an advantage when the economy could be able to produce at a…
Q: Select one: O Neither country has a comparative advantage in the production of timber or honey. O…
A: Comparative advantage arises when the country produces good at lower opportunity cost than other…
Q: In the Melitz (2003) model all firms that find exporting profitable will also find it profitable to…
A: It is an asymmetric two-country Melitz model.
Q: You manage a company that competes in an industry that is comprised of five equal-sized firms. A…
A: The recent industry report indicates that a tariff on foreign imports would boost industry profits,…
Q: Even without 100% specialization, if the trading price is greater than the country’s opportunity…
A: The trade is considered to be one of the most important economic activity around the globe. The…
Q: You are the manager of the only firm worldwide that specializes in exporting fish products to Japan.…
A: Import quotas can be expressed as the form of trade restrictions imposed with the aim of reducing…
Q: . Australia has only one firm that makes aircraft. Without assistance from the government. that firm…
A: All kinds of manufacturing of goods and services done by industries within the country is known as…
Q: Q25 If country A has wages that are substantially less than those in country B, ... a. The pattern…
A: When country A has wages that are substantially less than those in country B then it implies that…
Q: Two firms, A and B, are contemplating exporting a local fruit called durian to another country that…
A: a) The payoff matrix of the game can be represented as : Firm B Firm A Export Don't…
Q: Greece and Italy both produce olive oil and cheese. With the same amount of labour Greece produces…
A: Absolute advantage is the comparison between two countries of which one is producing output more…
Q: You are the manager of the only firm worldwide that specializes in exporting fish products to Japan.…
A: An Import is defined as a good or a service which is brought to one country that was produced in a…
Australia has an
Can produce more wool than South Africa. |
||
Specialises in wool pproduction. |
||
Can produce less wool than South Africa. |
||
Can produce more wool than South Africa with a given amount of resources. |
||
Consumes more wool than South Africa on average.
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia. Create an analysis on the entry country (Australia) based on the following; Are there any trade restrictions? This includes embargoes, quotas, import taxes, tariffs, licensing, and customs duties.Does the entry country require countertrade? Do they receive foreign aid?In the Melitz (2003) model all firms that find exporting profitable will also find it profitable to serve the domestic market. True FalseDirect investment should only be used when there is a low chance of success and the market has weak potential the market is stable and flat there is a low chance of success and the market has strong potential there is a high chance of success and the market has strong potential there is a high chance of success and the market has weak potential
- Exporting countries Which of the following will be true, everything else remaining constant, for a country that exports some good? a)The greater the price elasticity of supply for the good in the exporting country, the greater the volume of exports. b) The more that consumers in the exporting country respond to a change in price, the greater will be the gains from trade. b) The smaller the price elasticity of demand and supply in the exporting country, the greater the gains from trade. c) Some domestic suppliers will lose surplus while others will gain surplus. Choose the statements that match the question and briefly explain your reasoning to understand the question better. Thankyou.Consider a hypothetical world consisting of only three countries: Hungary, Australia, and Italy. Each country produces grain. Hungary is a small economy compared to Australia and Italy and thus cannot influence foreign prices. On the following graph, the supply and demand schedules of Hungary are shown as Sun and Dun. Foreign supply schedules of grain are perfectly elastic: Australia is a more efficient supplier of grain than Italy because its supply price is $1.00 per bushel (SAus), whereas Italy's supply price is $2.00 per bushel (Sita). PRICE (Dollars) 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0 Hun S +T S₁ +T S S + 0 3 6 A Scenario Free trade With tariff With customs union m SHu 12 15 18 21 24 27 30 GRAIN (Thousands of bushels) Calculate the quantity of bushels Hungary imports when the three nations engage in free trade. Enter this value in the first row of the following table. Also indicate which country Hungary imports from. ? Imports (Thousands of bushels) Imports…Quotas may be set on worldwide imports or on imports from a specific country.True or False
- There is more international trade in clothing than in fresh bread. This is likely because A) No country has an absolute advantage at producing bread B) No country has a comparative advantage at producing bread C) Shipping bread involves lower trade costs, because bread can go stale D) Shipping bread involves higher trade costs, because bread can go staleIf Argentina has an absolute advantage in the production of wheat and Chile has an absolute advantage in the production of copper, then A) neither country has anything to gain from specialisation and trade. B) it is reasonable to expect that specialisation and trade will benefit both countries. C) it is reasonable to expect that trade will benefit both countries, but specialisation will not. D) it is reasonable to expect that specialisation will benefit both countries, but trade will notIf a large country pays a subsidy to its producers of a product, Group of answer choices Foreign countries that are net exporters of the product lose. Foreign consumers lose. Foreign producers gain. Foreign countries that are net importers of the product lose.
- A country will have comparative advantage, accounting to Ricardo (A) industries that sell to domestic and foreign buyers (B) industries that sell to only foreign buyers (C) import competing industries (D) industries in which there are imports nor exportsAssume that you have been hired by an International Organization to be consulted on various issues that the country Motherland faces. For this exercise, assume that Motherland is a small agricultural economy. The biggest trading partner of Motherland is the United States. Unlike Motherland, the United States is a large industrial country. Assume Motherland imports electronics from the United States. The government of Motherland is considering to impose quotas on these electronics imports coming from the United States. Would you recommend it? Explain your answer. In your explanation, distinguish the effect on the consumers of electronics, the domestic producers of electronics and the government.Your explanation should not exceed 200 words.Suppose demand curve and supply curve of Product A in both countries are as follow: Country Demand curve (P = S$) Supply curve (P = S$) Singapore P = 76 - 2Q P = 52 + 2Q Thailand P = 68 – 2Q P = 44 + 2Q (Assume that only two countries above involve in Product A in an international market) a) Compute Singapore import demand curve. b) Compute Thailand export supply curve.