Discuss the theory that can explain the direction of trade.
Discuss the theory that can explain the direction of trade.
Homework Answers
ANSWER: H-O model, also known as Heckscher-Ohlin model was founded by Heckscher and Ohlin. It makes an assumption that the causes of directions of trade is because of the differences in factors of endowments among countries. Heckscher-Ohlin theorem states in the two-factor case: A capital-abundant nation will be exporting the capital-intensive good, and in the labor-abundant country will be exporting the labor-intensive good. Thus the exports of a capital-abundant country will be from capital-intensive industries while the labor abundant countries will export labour-intensive goods. The Heckscher-Ohlin theory predicts that a nation will export those products that make intensive use of locally abundant factors, while importing goods that make intensive use of factors that are locally scarce
Discuss why countries create barriers to trade when economic theory shows trade as being beneficial to...
Discuss why countries create barriers to trade when economic theory shows trade as being beneficial to a nation. Who benefits from international trade? Who loses from international trade? How can the negative effects of the failures from international trade be reduced? Do you agree with the concept of trade barriers? Why or why not?
Discuss the theory of absolute advantage and how it explains the basis for trade between nations.
Discuss the theory of absolute advantage and how it explains the basis for trade between nations.
Discuss international trade theory, political economy, and regional integration. In 250 words
Discuss international trade theory, political economy, and regional integration. In 250 words
Discuss the static trade-off theory and the pecking order theory of capital structure. What are the main differences between these two theories?
Discuss the static trade-off theory and the pecking order theory of capital structure. What are the main differences between these two theories?
Discuss how the theory of comparative advantage could guide the trade between China and the U.S.
Discuss how the theory of comparative advantage could guide the trade between China and the U.S.
International trade is considered to be an important component of the economy. Explain how the Theory of Absolute Advantage, Theory of Comparative Advantage and the Hecksher-Ohlin Theory determine w...
International trade is considered to be an important component of the economy. Explain how the Theory of Absolute Advantage, Theory of Comparative Advantage and the Hecksher-Ohlin Theory determine what a nation should produce for trade. Some economists argue that countries must have free, unregulated trade, do you agree? Why or why not?
Explain and discuss why Singapore as a more advanced but also small, trade-dependent economy, prefers a...
Explain and discuss why Singapore as a more advanced but also small, trade-dependent economy, prefers a flexible floating exchange rate system rather than a fixed exchange rate system, given the respective pros and cons of flexible and fixed exchange rates in theory
After researching, explain the trade-off theory and the pecking order theory using your own words. Do...
After researching, explain the trade-off theory and the pecking order theory using your own words. Do you see any evidence of pecking order theory in the company (Best Buy) you are analyzing?
Using the framework in Table 6.1, explain which of the theories relate to Taiwan’s trade policy...
Using the framework in Table
6.1, explain which of the theories relate to Taiwan’s trade policy
during each of the eras described in the case.
A check mark indicates that a theory of trade concerns itself
with the question asked at the head of the column; if there’s a
dash, it doesn’t. In the last four columns, you can see how each
theory responds to the specific question; again, a dash indicates
that the theory does not address the question....
a) Explain how set theory relates to probability theory. b) Discuss Kolomogrov's contributions to probability theory....
a) Explain how set theory relates to probability theory. b) Discuss Kolomogrov's contributions to probability theory. c) What are the axioms of probability and why are they important (in your own words)? Also describe the meaning of axiom.
Explain and discuss why Singapore as a more advanced but also small, trade-dependent economy, prefers a flexible floating exchange rate system rather than a fixed exchange rate system, given the respective pros and cons of flexible and fixed exchange rates in theory
Using the framework in Table
6.1, explain which of the theories relate to Taiwan’s trade policy
during each of the eras described in the case.
A check mark indicates that a theory of trade concerns itself
with the question asked at the head of the column; if there’s a
dash, it doesn’t. In the last four columns, you can see how each
theory responds to the specific question; again, a dash indicates
that the theory does not address the question....
a) Explain how set theory relates to probability theory. b) Discuss Kolomogrov's contributions to probability theory. c) What are the axioms of probability and why are they important (in your own words)? Also describe the meaning of axiom.
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