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- Which of the following is true about BRIC countries: a. There is low prospects of growth O b. To attain raw materials you will outsource to Bangladesh O c. There is low investment O d. There are high growth rates which may not be seen in North America Google is pursuing a global brand web strategy and must be mindful of the cultural and language differences across countries. Select one: O True O False occurs when a company exports to a foreign market at a price that is either lower than the domestic prices in that country or less than the cost of production.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)What is Inter-industry and Intra-industry trade? How do economies of scale and product variety provide an explanation for Intra-industry trade? do not copy from anywhere. plase write in your words for up vote.
- What are the comparative advantages (country-specific advantages)) of Rawanda for EU multinational companies? Can you relate those comparative advantages to the theories of international trade?“Trading blocs”/ Regional Integration efforts maybe considered the status quofor international trading under the new WTO “rules” as influenced and driven byglobalization, what are the reasons considered for their necessity/importance?Also what are the factors which act as impediments to the successful implementation ofthese regional areas?Question & Use the table to answer the question. Apples Bananas Country A Country B 800 500 O a O b Ос Od 1500 If all resources of Country A and Country B were dedicated toward the production of either apples or bananas, the maximum production of each is summarized in the table above. In order for both countries to benefit from trade, which country should specialize in banana productio and why? 1600 Review Answers Country A since it has the absolute advantage in banana production. Country A since it has the comparative advantage in banana production. Country B since it has the comparative advantage in banana production. Country B since it has the absolute advantage in banana production. Saved at 8:09 am Support | Schoology Blog | PRIVACY POLICY | Terms of
- 1. Export Subsidies (under perfect competition) in a small countrya. For a small country, is the logic for why export subsidies provide negative gainsdifferent than the logic for why import tariffs provide negative gains? Explain2. Airbus and Boeing problem again. Suppose Boeing is more efficient at making airplanesthan Airbus. Starting from slide 33, Figure 10-9, let’s change the payoff matrix, so that if Boeingand Airbus both produce, Boeing gets +5, instead of -5. And, if Boeing produces, and Airbusdoes not produce, Boeing gets +125 instead of +100. Will there be a unique equilibrium in thiscase?3. Trade and the Environment Figure 11-4 in the slides shows a case of a negativeproduction externality and in which free trade leads to imports. Instead, analyze the case inwhich free trade leads to exports (i.e., the world price is greater than the no-trade price).a. Create your version of figure 11-4a, but illustrate the case in which the world price ishigher than the no-trade price.b.…2) Figure below illustrates the steel market for Mexico, assumed to be a "small" coantry that is unable to affect the world price. Suppose the world price of steel is given and constant at $200 per ton. Now suppose the Mexican steel industry is able to obtain trade protection. Mexican producers' supply with and without subsidy are also provided. Figure: Mexico's Steel Trade with and w/o non-tariff barriers 1000 800 SM o subi 600 Su am ra 400 200 Ou 2 10 Tons of d) Suppose the Mexican govemment provides a subsidy of $200 per ton to its steel producers, as indicated by the supply schedule Sa jwth esbedyl. The quantity of imports is tons. e) Suppose the Mexican govemment provides a subsidy of $200 per ton to its steel producers, as indicated by the supply schedule Sa jwith eubrdyi. The overall deadweight welfare loss to Mexico equals $2) Figure below illustrates the steel market for Mexico, assumed to be a "small" coantry that is unable to affect the world price. Suppose the world price of steel is given and constant at $200 per ton. Now suppose the Mexican steel industry is able to obtain trade protection. Mexican producers' supply with and without subsidy are also provided. Figure: Mexico's Steel Trade with and w/o non-tariff barriers 1000 800 SM o subi 600 Su am ra 400 200 Du 10 Tons at Steel a) Consider the above figure. With free trade, Mexico imports steel at a quantity of b) Consider the above figure. With free trade, Mexico's consumer surplus and producer surplus will respectively equal to: $ c) Assume that the Mexican govemment imposes an import quota equal to 2 tons of steel. If foreign exporters behave as monopoly buyers and Mexican importers behave as competitive sellers, the overall welfare loss of the quota to Mexico equals to $ tons. and $
- What factors does Paul Krugman identity that supported expanding international trade in the 1800s?What are the conditions under which a country may use the unsafe products argument to block imports?a) Suppose the two countries engage in international trade, and that the international relativeprice of good (T) is 3 tons of good (D). Can there be mutually beneficial international tradebetween the two countries? If so, which are the patterns of comparative advantage, ofproduction and consumption, of exports and imports between the two countries? What arethe gains from trade for each country? b)
