Homework Answers
Answer 1) option A is the correct answer. In HO model nation with abundant land would produce labor intensive good.
Answer 2) option B is the correct answer. The gains from international trade comes from improvement in the technology.
Answer 3) option D is the correct answer. in HO model trade will benefit the good that is extensively using the relatively abundant factor of production. The nation would export that good which is using abundant factor of production.
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will have a production possibility In the Heckscher-Ohlin model, the country with the relative abundance of...
In the traditional Heckscher-Ohlin model, the two countries differ in: Select one: O a. Technology O...
In the traditional Heckscher-Ohlin model, the two countries differ in: Select one: O a. Technology O b. Their preferences for cloth and food. O c. Capital productivity. d. Relative abundance of production factors. Assume that two countries, Home and Foreign, are endowed with the following production factors. Countries Factor Endowments Home Foreign Labor (L) 9040 Capital (K) 30 20 Assume that food is capital-intensive and cloth is labor-intensive. Following the Heckscher-Ohlin Theory Select one: A. Foreign will export food. B....
These questions are about international trade. I want to know the answers. 5 Heckscher-Ohlin Model. Suppose...
These questions are about international trade.
I want to know the answers.
5 Heckscher-Ohlin Model. Suppose the production of cloth is labour intensive and the production of food is land intensive and suppose the United States (US) is labour abundant and Canada is land abundant. (a) Show how the US production possibility frontier (PPF) differs from the Canadian PPF. Briefly explain. (Use the general version of the PPF's) (b) Which country will have the lower price of cloth Pc relative...
1. This problem uses the Heckscher-Ohlin model to predict the direction of trade. Consider the production...
1. This problem uses the Heckscher-Ohlin model to predict the direction of trade. Consider the production of handmade rugs and assembly line robots in Canada and India. a. Which country would you expect to be relatively labor-abundant, and which is capital-abundant? Why? b. Which industry would you expect to be relatively labor-intensive, and which is capital-intensive? Why? c. Given your answers to (a) and (b), draw production possibilities frontiers for each country. Assuming that consumer preferences are the same in...
In the 2-factor, 2 good Heckscher-Ohlin model, a change from autarky (no trade) to trade will benefit the owners of...
In the 2-factor, 2 good Heckscher-Ohlin model, a change from autarky (no trade) to trade will benefit the owners of: capital the relatively abundant factor of production labor the relatively inelastic factor of production
60. In the 2x2x2 Heckscher-Ohlin analysis, if an relatively labor-abundant country is opened to trade, then,...
60. In the 2x2x2 Heckscher-Ohlin analysis, if an relatively labor-abundant country is opened to trade, then, as the movement to trade takes place, the capital/labor ratio used in the country's export industry will _and the capital/labor ratio used in the country's import-competing industry a. increase; will decrease b. increase; also will increase c. decrease; also will decrease d. decrease; will increase
2. Use the Heckscher-Ohlin model to consider the production of hand-made pottery and silicon microchips in...
2. Use the Heckscher-Ohlin model to consider the production of hand-made pottery and silicon microchips in the UK and India. (a) Which country would you expect to be relatively labor abundant, and which relatively capital abundant? Why? (b) Which industry would you expect to be relatively labor intensive, and which capital intensive? Why? (c) Given your answers to (a) and (b), draw PPFs for each country. Assuming preferences are the same, add indifference curves and relative autarky price lines. What...
1. The Heckscher–Ohlin model Home and Foreign have two production fac- tors, skilled and unskilled labor...
1. The Heckscher–Ohlin model Home and Foreign have two production fac- tors, skilled and unskilled labor and produce two goods, textiles and com- puters. Home is skilled labor abundant, and computers are skilled labor intensive. Starting from a situation of autarky, the two countries liberalize trade. Assuming that the two countries produce both goods before and after trade liberalization, answer the following questions: (a) What is the effect of trade liberalization on the relative price of com- puters at Home...
2. Answer the following question under the assumptions of the Heckscher-Ohlin model. There are two industries of pr...
2. Answer the following question under the assumptions of the Heckscher-Ohlin model. There are two industries of production: clothing (Qd) and food (Qr). Clothing is capital-intensive and food is labor-intensive. There are two countries: Home and Foreign. Home is capital abundant and Foreign is labor abundant. (Same as in class) a. Draw a "box" graph that represents the labor and capital inputs into each industry in Home b. What do the slopes of the lines drawn in part (a) represent?...
1) We are in two good, two country, where all of the assumptions of the Heckscher-Ohlin...
1) We are in two good, two country, where all of the assumptions of the Heckscher-Ohlin model of trade are satisfied. Suppose that in Japan there are 50 workers and 50 acres of land, while in the US there are 100 workers and 200 acres of land. Suppose furthermore that the two goods, rice, and cloth, are produced using land and labor. Rice is land intensive. Suppose the two countries open up to trade. What will be the pattern of...
The Heckscher–Ohlin model. Home and Foreign have two production factors, skilled and unskilled labor and produce...
The Heckscher–Ohlin model. Home and Foreign have two production factors, skilled and unskilled labor and produce two goods, textiles and computers. Home is skilled labor abundant, and computers are skilled labor intensive. Starting from a situation of autarky, the two countries liberalize trade. Assuming that the two countries produce both goods before and after trade liberalization, answer the following questions: (a) What is the effect of trade liberalization on the relative price of computers at Home and in Foreign? (b)...
In the traditional Heckscher-Ohlin model, the two countries differ in: Select one: O a. Technology O b. Their preferences for cloth and food. O c. Capital productivity. d. Relative abundance of production factors. Assume that two countries, Home and Foreign, are endowed with the following production factors. Countries Factor Endowments Home Foreign Labor (L) 9040 Capital (K) 30 20 Assume that food is capital-intensive and cloth is labor-intensive. Following the Heckscher-Ohlin Theory Select one: A. Foreign will export food. B....
These questions are about international trade.
I want to know the answers.
5 Heckscher-Ohlin Model. Suppose the production of cloth is labour intensive and the production of food is land intensive and suppose the United States (US) is labour abundant and Canada is land abundant. (a) Show how the US production possibility frontier (PPF) differs from the Canadian PPF. Briefly explain. (Use the general version of the PPF's) (b) Which country will have the lower price of cloth Pc relative...
In the 2-factor, 2 good Heckscher-Ohlin model, a change from autarky (no trade) to trade will benefit the owners of: capital the relatively abundant factor of production labor the relatively inelastic factor of production
60. In the 2x2x2 Heckscher-Ohlin analysis, if an relatively labor-abundant country is opened to trade, then, as the movement to trade takes place, the capital/labor ratio used in the country's export industry will _and the capital/labor ratio used in the country's import-competing industry a. increase; will decrease b. increase; also will increase c. decrease; also will decrease d. decrease; will increase
2. Answer the following question under the assumptions of the Heckscher-Ohlin model. There are two industries of production: clothing (Qd) and food (Qr). Clothing is capital-intensive and food is labor-intensive. There are two countries: Home and Foreign. Home is capital abundant and Foreign is labor abundant. (Same as in class) a. Draw a "box" graph that represents the labor and capital inputs into each industry in Home b. What do the slopes of the lines drawn in part (a) represent?...
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