Which of the following are common characteristics of multinational enterprises (MNES)? Check all that apply. Low labor productivity ✔Acquisitions in nonrelated markets ✔Creation of the demonstration effect ✔ Foreign sales that represent a high proportion of total sales Company headquarters that are always located in the country where production occurs ✔Diversified operations Complete the following table by indicating whether each assumption is used by multinational enterprise (MNE) analysis, conventional trade theory, or both. Check all that apply.
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- One reason that a large share of the trade between high-income industrial economies is intra-industrytrade is becauseA) Intra-industry it is more advantageous than inter-industry tradeB) high-income industrial economies compete with each other with the same good.C) high-income industrial economies have very different factor endowments in absolute terms.D) it allows firms to take advantage of economies of scale.Assume that Trinbago is a small country that produces wine and motor vehicles, where motorvehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin(H-O) assumptions hold. (d) In autarky, according to Ohlin, how does Trinbago’s relative price of labour compare to Vincyland’s? (e) Show the necessary graphs to fully explain all requested effects. Ensure to label graphs and give brief explanations. (f) Given that Vincyland is a small country, examine the partial equilibrium welfare effects associated with imposing a tariff on their import good given that the prediction of the imported good yields a positive externality. (g) Should a subsidy have given a more desirable solution. Please explain and provide references.Q)5 a)Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization? Division of labor International trade Economies of scale b) In a market economy, ___ own(s) the means of production. individuals everyone the government or ruling class c)Which of the following is required for specialization to work? (Choose the best answer) Technology Education Trade solve all three subparts early.with short explanation and correctly
- Q)5 a)Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization? Division of labor International trade Economies of scale b) In a market economy, ___ own(s) the means of production. individuals everyone the government or ruling class c)Which of the following is required for specialization to work? (Choose the best answer) Technology Education Trade solve this earlyAssign the different theories to the source of gains from trade in the theory (e.g. specific factors model - differences in relative (specific) factor endowments) Melitz (2003) model A. Returns to Scale |Monopolistic Competition model B. Differences in relative factor endowments vHeckscher-Ohlin model C. Differences in firm productivities Ricardian model D. Comparative advantage due to labour productivity differencesNote : The answer should be typed. double space with 12-point font. What is Specialization and what are the Pros and Cons of it. Give me examples of specialization
- 1. Consider the following example of the Ricardian model Units of labor required per unit of output: France (F) Italy (I) 5 2 Beef (B) Corn (C) 3 4 Labor Force (a) Determine which country has an absolute advantage in which good and which country has a comparative advantage in which good. Compute opportunity cost ratios and relative autarky prices, defined as PC/PB. 48000 50000 (b) Draw the PPFs (put C on the horizontal axis) and label endpoints with appropriate figures. Supposing that each country splits its labor force in half between C and B in autarky, show the autarky equilibrium. (c) Now let the price ratio established in trade equal (Pc/PB)* = 1.0 and suppose France exports 500 units of beef. Determine each country's imports and exports, show the equilibrium trade triangles and compute the gains from trade for each country in terms of units of B and C. Briefly indicate which country gets larger gains and why.Using the one factor Ricardian model concept and the unit labor requirements information in the table below, determine d) In what commodity production, foreign has a comparative advantage.Explain.e) Which country has an absolute advantage. Explainf) If PC is the price of Cheese and PW is the price of Wine, and PC = PW, thenWhat commodities will domestic specialize in?g) If PC is the price of Cheese and PW is the price of Wine, and PC = PW, thenwhat commodities will foreign specialize in?h) Using the comparative advantage information above, determine the commodity thatexported and imported by domestic and foreign respectively?i) If PC = PW or PC/PW = 1, what is the gain from trade obtaineddomestic and foreign if each country specializes inwhich production has a comparative advantage? Explain.j) If if PC = PW = $9, what is the wage relative to trade.Which country's workforce benefits from the trade?Consider two competitive economies that have the same quantities of labor and capital (K=L), and the same technology. The economies of the countries are described by the following Cobb–Douglas production functions: North Economy: Y = AK^0.7 L^0.3 South Economy: Y = AK^0.3 L^0.7 If half of workers (L) in North immigrated to South, explain how would total output, marginal produc- tivity of labor, and labor’s share of income in the two economies change?
- Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin (H-O) assumptions hold. The other country in the model is Vincyland. Questions: Give a short background on the Heckscher-Ohlin Trade model and then answer the following questions. (a) Based on the H-O assumptions, which good should Vincyland export, and why? (b) What trade pattern would occur if the Leontief Paradox holds? (c) Which two (2) explanations of the Leontief Paradox most strongly support the H-O theory? Give the reasons. (d) In autarky, according to Ohlin, how does Trinbago’s relative price of labour compare to Vincyland’s? (e) Show the necessary graphs to fully explain all requested effects. Ensure to label graphs and give brief explanations. (f) Given that Vincyland is a small country, examine the partial equilibrium welfare effects associated with imposing a tariff on their import…When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Candonia and Sylvania. Both countries Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure. produce lemons and coffee, each initially (i.e., before specialization and trade) producing 18 million pounds of lemons and 9 million pounds of coffee, as indicated by the grey stars marked with the letter A. Candonia has a comparative advantage in the production of lemons, while Sylvania has a comparative advantage in the production of coffee. Suppose that Candonia and Sylvania specialize in the production of the goods in which each has a comparative…* 00 B # 3 QUESTION 33 Ricardo's theory of trade is based on (A: productivity of labor; B: dpportunity cost; C: capital labor ratio). QUESTION 34 The MRS (marginal rate of substitution) is the slope of curve; C: consumption curve). (A: production possibility curve; B: indifference QUESTION 35 2 p Increasing opportunity costs result in a production possibilities frontier that is horizontal) to the origin. (A: convex; B: concave; C: linear; D: Save All Answers MAR 12 étv MacBook Air SC F1 08 F2 F4 F5 F7 F 8 F10 i 2$ 2 ( 4. 5. | ] A. X C. option command command option