Questions I and J. Finally assume that the countries, after much deliberation, decided to trade 25 beets for 100 bushels of corn.i) Complete the table below:AlbaniaBelizeCornВeetsCornВeetsProductionProduction before trade (B)Production with specialization (C)Consumption with trade (D)j) Finally graph the effects of trade in the PPF's for both countries and confirm if they were able to produce above their frontiers (labelthese final points of consumption on the graph for each country and label it as point A: final point of consumption).*When finding these final new points make sure to keep in mind that the numbers on the line are prorated based n the X and Yintercept* Imagine the following case study where two different countries: Albania and Belize have remained self-sufficient and mostly producetwo of the following products: corn and beets. Our hopes are that we will be able to improve trade liberalization and encourage eachone to work together in order to improve the number of resources and goods each one provides to their population. Here are theirproduction levels for each product per worker/month (assume each country has a workforce for 15 workers):BushelsCorn (Y-аxis)Вets (X-аxis)Albania4020Belize204Calculate and graph the Production possibilities frontiers for both countries.b) Assume that both countries currently prefer equal amounts of corn and beet for their production & consumption levels withintheir country, clearly label this point and call it point B: production/consumption before trade.c) Calculate and state the number of workers that would be required in order to produce points B for both countries.a)d) Complete the table below showing the different levels of opportunity costAlbaniaBelizeCornВeetsCornВeetsProductionOpportunityCoste)Who has absolute advantage and comparative advantage for each item produced?f) Applying the idea behind specialization, who should focus on which product and why? (Calculate specialization for eachitem and country, call his point C: Specialization)AlbaniaBelizeCornВeetsCornВeetsProduction with specializationg) Who should export or import corn and beets?Given that both economies have now agreed to trade, clearly label the point where each one specializes in one level of production foreach item (call this point D: consumption with trade). Now let's focus on the terms of trade between each country, after completingthe table above and the 2 countries permanent representatives discussing the 3 terms of trade, 4 options were presented:1 beet = 6 units of cornOption 1:Option 2:Option 3:Option 4:&1 corn = 0.4 units of beets1.5 beet = 3.5 units of corn&1 corn = 0.52 units of beets1 beet = 4 units of corn1 beet = 4 units of corn1 corn = 0.4 units of beets1 corn =0.10 units of beets&&h) Which option is the most acceptable for this situation? why

Production possibility curve is a graphical representation which shows the combinations of two goods…

Finally assume that the countries, after much deliberation, decided to trade 25 beets for 100 bushels of corn. i) Complete the table below: Albania Belize Corn Beets Corn Вeets Production Production before trade (B) Production with specialization (C) Consumption with trade (D) j) Finally graph the effects of trade in the PPF's for both countries and confirm if they were able to produce above their frontiers (label these final points of consumption on the graph for each country and label it as point A: final point of consumption). *When finding these final new points make sure to keep in mind that the numbers on the line are prorated based n the X and Y intercept*

Finally assume that the countries, after much deliberation, decided to trade 25 beets for 100 bushels of corn. i) Complete the table below: Albania Belize Corn Beets Corn Вeets Production Production before trade (B) Production with specialization (C) Consumption with trade (D) j) Finally graph the effects of trade in the PPF's for both countries and confirm if they were able to produce above their frontiers (label these final points of consumption on the graph for each country and label it as point A: final point of consumption). When finding these final new points make sure to keep in mind that the numbers on the line are prorated based n the X and Y intercept

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 54CTQ: Trade has income distribution effects. For example, suppose that because of a government-negotiated...

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Trade has income distribution effects. For example, suppose that because of a government-negotiated reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells house paint to the Czech Republic. The Czech Republic sells alarm clocks to Germany. Would you expect this pattern of trade to increase or decrease jobs and wages in the paint industry in Germany? The alarm clock industry in Germany? The paint industry in Czech Republic? The alarm clock industry in Czech Republic? What has to happen for there to be no increase in total unemployment in both countries?
You just overheard your friend say the following: Poor countries like Malawi have no absolute advantages. They have poor soil, low investments in formal education and hence low-skill workers, no capital, and no natural resources to speak of. Because they have no advantage, they cannot benefit from trade. How would you respond?
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Under free trade, the quantity of smartphones produced by local producers in Country A is 21266 per year and the quantity of smartphones bought in Country A is 82214 per year. After the imposition of an import quota of X units per year, the quantity of smartphones produced by local producers in the aforementioned country is 44191 per year and the quantity of smartphones bought in the aforementioned country is 61094 per year. What is the value of X? Under autarky, the equilibrium quantity of chairs in India is 126052 per year. Once free trade is introduced with the world, quantity of chairs produced in India is 189406 per year and quantity of chairs purchased by Indian citizens is 70247 per year. What is the volume of exports of chair from India under free trade?
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Suppose eachworker in Home can produce 12wheat or 4TVs. Assume that Home has 10workers. Suppose each worker in Foreign can produce 8 wheator 2 TVs.Assume that Foreign has 20 workers.a.What is the no-trade relative price of TVs in Home and Foreign respectively?b.Which country has an absolute advantage in the production of wheat? Which country has a comparative advantage in the production of wheat?c.Use two graphs (one for Home and one for Foreign) to display production possibilities along with indifference curves and label no-trade equilibria and a trade equilibrium constructed by you. (Assume that positive quantities of both goods are consumed in both countries in all equilibria). Pick your own numbers for the relative price in the trade equilibrium and for quantities consumed in the trade and no-trade equilibria for both countries.d.What is the real wage in units of wheat in Home in the no-trade and inyour proposed trade equilibrium?e.Calculate the gains from trade for Home by…
N Qf Uf V Ct A X The above figure shows the effect of an import tariff on sector Y in the home country. Which statement is INCORRECT about the effect of this tariff? The post-tariff 'trade triangle' is smaller than the free trade 'trade triangle' O Tariff caused production of X to increase and production of Y to decrease, relative to free trade production level O Tariff has caused production of X to increase and production of Y to decrease, relative to autarky production level O Tariff leads to a welfare loss relative to free trade but certainly not relative to autarky