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q one of the usually used assumptions in deriving the heckscher-ohlin model is that tastes are homothetic or that if the per capita incomes were the
q why is it that north-south trade in manufactures look to be consistent with the results or expectations generated by the factor-proportions theory
q factor-intensity reversals define a situation in which the production of a product can be land-intensive in one country and relatively labor
q the heckscher-ohlin model is famous for being elegant and mathematically sophisticated yet failing to define reality one manifestation of this
q the brazilian firm is charging its foreign us customers one half the price it is charging its domestic customers is this bad or good for the real
q now the monopolist discovers that it will export as much as it likes of its steel at the world price of 5ton it will thus expand for- export
q it is probable that trade based on external scale economies can leave a country worse off than it could have been without trade illustrate how
q if a scale economy is the dominant technological factor establishing or defining comparative advantage then the underlying facts explaining why a
q is it possible that if positive scale economies characterize an industry that its equilibrium can be consistent with purely competitive conditions
q why is it that an industry is performing under conditions of domestic internal scale economies applies to firm in the country - then the resultant
q suppose albania is exporting product b and experienced economic growth biased in favor of product b as seen in the figure above we are also told
q consider as a result of several dynamic factors associated with exposure to international competition albanias economy grew and is now shown by
q albania refused to engage in international trade for ideological reasons to maximize its economic welfare it could choose to produce at which
q it is argued that import substitution is a misguided trade policy if the intent is to show long-term economic growth illustrate the reasons
q the us is most probably the most open international market among the industrialized countries what then does the us have to took by joining the
q suppose airbus is set to give the aircraft before boeing which company will enter the marketanswer boeing will not and airbus will
q suppose both governments offer their respective company a 10 million subsidyanswer mutually companies would enter the market as each one knows
q suppose the us government but not europe offers a 10 million subsidyanswer in this case airbus would make a decision not to enter the market
q how could the us government justify its decision to offer a subsidy to a profitable and successful businessanswer it could indicate that this 10
q what are the main points of economic life that macroeconomics analysis is most concerned withanswer there are four major aspects that are saving
q what is the national income identity for a closed economyanswer y c i
q what is the national income identity for an open economyanswer y c i g ex -
q discuss the values of private saving in closed and open economiesanswer in the closed economy private saving sp is equal to i g - t and in an open
q discuss the effects of government deficits on the current accountanswer a difficult and hard issue that during the reagan administration the
q what types of international transactions are recorded in the balance of payment accountsanswer three kinds transactions that involve exports and