What is the opportunity cost of burgers for the united state


Assignment:

International Trade Questions

Watch this video on international trade and then answer the following questions.
International Trade Video

1) Explain how the United States, being a large economy with an abundance of natural resources, labor, and capital, can benefit by not being in autarky.

2) It was shown in the video that the United States had the comparative advantage in burgers. Using the table below, show and explain how Mexico has the comparative advantage in phones.

 

Mexico

United States

P01.61)1111>

Burgvrs

Monts

Burgers

Phones

A

b

0

12

0

B

-I

 

 

S

 

 

16

4

16

1)

0

24

I/

24

3) From your answer in the previous question, what is the opportunity cost of burgers for the United States, Le. how many burgers must the United States give up to produce one phone? What would be an agreeable terms of trade for I phone?

4) At the end of the video, a supply and demand graph of the phone market for both countries was shown. Explain why Mexico exported phones to the United States.

5) Suppose, the market for burgers was shown rather than the market for phones in the supply and demand graphs. For the United States to export burgers and Mexico to import burgers, what would world price need to be, in each country, relative to the domestic price?

6) Lastly, explain what a tariff is and the effect it can have on burger imports for Mexico.

By submitting this paper, you agree: that you are submitting your paper to be used and stored as part of the SafeAssignTM services in accordance with the Blackboard Privacy Policy;  that your institution may use your paper in accordance with your institution's policies; and that your use of SafeAssign will be without recourse against Blackboard Inc. and its affiliates.

Solution Preview :

Prepared by a verified Expert
Microeconomics: What is the opportunity cost of burgers for the united state
Reference No:- TGS01804657

Now Priced at $25 (50% Discount)

Recommended (95%)

Rated (4.7/5)

2015 ©TutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.