Using relevant diagrams define and explain the Rybczynski theorem. What predictions does this theorem have for production possibility frontier, domestic production and trade.
Using relevant diagrams define and explain the Rybczynski theorem. What predictions does this the...
Question 12 State the Heckscher-Ohlin Theorem. Suppose there are two countries, USA and Germany. USA is regarded as the home country and Germany is the foreign country. USA has 100 units of labor available and Germany has 80 units of labor. Both countries can produce only two goods, airplanes and cars. The output per hour of labor in the production of airplanes in the USA is 12, while in car production the output per hour of labor is 6. In...
Explain how does Foster's Reactance Theorem relate to electrical circuits. Use diagrams and graphs for the explanation.
Distinguish between the external return to scale and internal return to scale. How does the new trade theory of economic returns to scale differ from the traditional trade theories like Ricardian model, and Heckscher - Ohlin model? 3. 4. What is the Rybczynski theorem? How does theorem predict changes in factors usage in production and change in trading volume if there is an influx of immigrant?
a) Define "perception of influence" relating to employees joining trade unions. Define and explain using examples how "desired influence" and "Difficulty of influencing condition" makes employees join trade unions. b) Define "beliefs about unions" relating to employees joining trade unions. Define and explain using examples how "Expectations about unions" makes employees join trade unions.
IV.Questions (36%) 1. Explain the main idea of H-O theorem. (6%) 2. What is increasing returns to scale? Draw a graph to explain the trade based on increasing returns to scale (10%) 3. Draw a graph to explain the effect of import quota (8%) 4. The production possibility frontiers of nation 1 shown in Fig. nation 1 is labor abundant and export X . P4 is the equilibrium price of autarky in nation 1, Pw and P are the world...
5. Country Y, a small country, does not have a copy paper
industry but does have vast forested areas that are not otherwise
being utilized. A study by the country’s development agency finds
that the production of copy paper could generate producer surplus
(and hence increase Country Y’s welfare). However, high initial
production costs currently prevent domestic firms from entering the
market. According to the study, the market today and the market in
the future look as depicted in the...
What is Scattering. Explain using formulas, diagrams and what applications it can be used for
This is the equation for Mexico’s Production Possibility Frontier (PPF): 60=3F+2C 1. Plot the Production Possibility Frontier for Mexico 2. What is the opportunity cost of producing food in Mexico? 3. What is the opportunity cost of producing clothing in Mexico? 4. Now, use the information from USA’s Production Possibility Frontier as discussed in class. Relative to USA, what does Mexico have a comparative advantage in? In other words if Mexico were to trade with the USA, what should it...
please answer it ASAP
IV.Questions (36%) 1. Explain the main idea of H-O theorem. (6%) 2. What is increasing returns to scale? Draw a graph to explain the trade based on increasing returns to scale (10%) 3. Draw a graph to explain the effect of import quota (8%) 4. The production possibility frontiers of nation 1 shown in Fig. nation 1 is labor abundant and export X. PAis the equilibrium price of autarky in nation 1, Pw and Pa are...
1) (30 puan) a) Explain under what conditions two countri if two nations have identical production possibility frontiers and identical tastes. b) Compare Krugman's new trade theory with 'new' new trade theories. 2 es can gain as a result of trade even (45 points) Coneid