Study the table below and answer the question that follows. Afghanistan US Carpets 100 500 Fighter aircraft 4 25 An appropriate international exchange ratio that would allow mutually advantageous trade to take place would be a) 1 aircraft = 25 carpets. b) 1 aircraft = 20 carpets. c) 1 carpet = 0,04 aircraft. d) 1 aircraft = 22 carpets.
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- What is the range for mutually beneficial trade between the United Kingdom and Spain for each computer chip traded? How much would the United Kingdom and Spain gain if 1 unit of beef is exchanged for 3 chips?For all questions, refer to the graph on the reverse side. Use this graph for 1 – 4. The graph represents the market for coffee. Estimation may be necessary, so show work. Assuming the market outcome, and a world price of $6.50 calculate the following: Price Qddom Qsdom Imports or exports Redo all parts of #1 assuming a world price of $3.50. Redo all parts of #1 assuming a world price of $3.50 and a tariff of $0.50. Redo all parts of #1 assuming a world price of $3.50 and a quota of 60. Name a good that will see increased sales due to the tariff or quota above. Name a good besides coffee that will see decreased sales due to the tariff or quota above. Suppose that 1 US$ = 1.5 South African Rand. Also, suppose that the representative good, peanut butter, is $3 per jar in the US and 4 Rand per jar in SA. How will this situation affect the exchange market for U.S. dollars? Explain/show the effect(s) of these prices. Include the initial effect(s), the market…Refer to the table below. If Canada and Japan based their trade on comparative advantage, what would be the MAXIMUM number of airplanes that Canada could GAIN if it exports one car? COPYRIGHTED MATERIAL. NOT TO BE SHARED. Hours needed to make one unit: Cars Canada 40 Japan 50 1/12 of a plane 1/4 of a plane 1/3 of a plane 1 plane Airplanes 160 150 Amount produced in 2400 hours: Cars Airplanes 60 48 15 16
- Do consumers benefit from intra-industry trade?Consider two countries: South Korea and Taiwan. Taiwan can produce one million mobile phones per day at the cost of 10 per phone and South Korea can produce 50 million mobile phones at 5 per phone. Assume these phones are the same type and quality and there is only one price. What is the minimum price at which both countries will engage in trade?Homework (Ch 09) Q Search th The following graph shows the domestic supply of and demand for maize in Panama. The world price (Pw) of maize is $270 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount dermanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. Domestic Demand Domestic Supply 450 430 410 300 370 350 330 260 270 PRICE (Dollars per ton)
- 1. What is the Impact of COVID-19 on Trade in case of Pakistan,PRICE (Dollars per ton) 800 590 560 530 500 470 W 440 410 380 350 Domestic Demand 320 3 D 0 30 60 E Consumer Surplus Producer Surplus C 90 120 150 180 210 QUANTITY (Tons of melons) When Guatemala adjusts its trade policy to allow free trade of melons, the price of one ton of melons in Guatemala becomes $500. At this price, tons of melons will be demanded in Guatemala, and tons will be supplied by domestic suppliers. Therefore, Guatemala will export tons of melons. Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. With Free Trade (Dollars) Without Free Trade (Dollars) $ 4 When Guatemala allows free trade, the country's producer surplus by s R F Domestic Supply V 5 T P. G W 240 270 270 300 6 by s and consumer surplus Therefore, the net effect of allowing international trade on Guatemala's total surplus is a Y Consumer Surplus H Producer Surplus & 7 N U J * 8 M 1 ( 9 K O O L P of : ; { [ ?If the United States were to lift existing tariffs on steel imports: Question 32 options: A.the supply of steel shifts to the right and lowers its market price. B.the demand for steel shifts to the right. C.the supply of the imported steel shifts to the left and raises its market price. D.the demand for steel shifts to the left and raises its market price. Please type out the correct step by step answer with proper explanation of the each option given within 40 50 minutes . Will give you thumbs up only for the correct answer. Thank you .
- (f) Suppose that the equilibrium price of good x (keeping the price of good y as 1) is equal to 1. Determine the optimal production and consumption both at Home and Foreign when they open up to trade. Depict this in graph.35. What are the conditions necessary for international trade to be mutually beneficial? a) absence of fraud and coercion b) reciprocal trade, meaning imports must also generate exports c) balance of trade, meaning the value of imports must equal the value of exports d) the trading parties must have different production possibilities frontiers e) trading parties must be able to calculate their costs and benefits f) each country must be exporting the good in which it has an absolute advantage g) each country must specialize in the good of which it is the more efficient producer h) the trade does not cause some jobs to move to the other countryExplain the importance of Agreement on Trade on Civil Aircraft