International Trade permits production of a coordinated market that is bigger than each nation's market. It along these lines winds up conceivable to offer shoppers a more noteworthy assortment of items and lower costs.
In spite of the fact that the level and the pace of financial advancement depend essentially on interior conditions in creating countries, worldwide exchange can contribute altogether to the improvement procedure. A few financial experts accepted that universal exchange and the working of the present worldwide monetary framework profited created countries to the detriment of creating countries.
Monopolistic competition considers gains from exchange through lower expenses and costs, just as through more extensive shopper decision. Monopolistic challenge affect worldwide exchange. The presence of huge number of dealers extend the market size and supply of separated items.
The challenge of firms through separated cost may cause misfortunes, along these lines they incline toward non value rivalry like commercials, ensures and guarantees. Under monopolistic challenge a nation can accomplish assortment of merchandise at low cost and help to extend market and incorporation of market
3. Under Internal Scale Economies and Monopolistic Competition, explain how International Trade can improve economic efficiency...
4. Under Internal Scale Economies and Monopolistic Competition, explain how this type of International Trade is consistent with the Gravity Model of Trade. (2 points) a.
2. Under Internal Scale Economies and Monopolistic Competition, what is the impact of International Trade on the price in an industry? Circle one option. (1 point) a. The price increases b. The price decreases C. The price stays the same d. Not enough information to determine the effect of International Trade on the price
1) What is internal economies of scale? And why would it be a source of trade? What are the gains of trade in the presence of internal economies of scale? 2) Using graph please explain how performance differences in an industry with internal economies of scale creates winners and losers after trade? Explain step by step.
International trade ar 36 Internal economies of scale will by average cost when output is Pr A) increase; increas ed; a firm B) reduce; increased; the industry C) increase; increased; the industry D) reduce; reduce; the industry E) reduce; increased; a firm and 37 The learning curve describes the A) direct; unit cost; cumulative output B) inverse; educ ation; annual income C) inverse; unit cost; cumulative output D) direct; education; annual income E) direct; education; labor productivity , relationship between...
42. In an industry where firms experience internal scale economies, we wong-run Ousu of production will depend on: A) individual firms' fixed costs. B) the size of the labor force. C) whether the country engages in intra-industry trade. D) the size of the market. E) whether the country engages in inter-industry trade. 43. In the model of monopolistic competition, if firms have average cost curves, then opening trade will the total number of firms and the average price. A) downward...
Define & explain the following in economic terms: 1)Economies of Scale/Minimum Efficient Scale 2)How luck (or randomness, or industry instability) can lead to concentrated market structure
international trade: Internal Economies of Scale Problem 1 Suppose two countries, Canada and Japan are considering making computers. Firms in each individual country are identical and symmetric in their cost structures. It costs $5 Million to set up a computer production facility and then an addition $20 to make each computer individually, in either country. The price at which each firm can sell its computers is affected by the amount of firms it must compete with, and is given by...
5 points QUESTION 11 Trade has no effect on the distribution of incomes within countries in trade relations. True False 5 points QUESTION 12 Internal economies of scale form the basis for international trade. True False 5 points QUESTION 13 Economies of scale give rise to international trade True False 5 points QUESTION 14 Preferential trade agreements are welfare improving if they lead to trade diversion. True False 5 points QUESTION 15 GATT is a more formal organization with larger...
. Explain the role of brands in a monopolistic competition market. How can the pricing and profits for a firm in this market structure differ from perfect competition and when will the two market types reach the same outcome? Why does that make it essential for firms to have a strong brand identity? Give an example of a product with this type of market structure and discuss (briefly) how the firms have established their brands.
3 to 5 sentances each 1. Distinguish economies and diseconomies of scale. How can the extent to which economies and one scale explain the size and number of real world firms in an industry? 2. Distinguish the short run from the long run Generally, what causes costs of production to vary with output in the short ruan? What generally causes costs of production to vary in the long run? 3. What is the difference between economic and accounting profit? Why...