As an international economist you have been asked to make a short speech which answers the given questions:
Question 1. How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns?
Question 2. The Heckscher-Ohlin theory demonstrates how trade affects the distribution of income within trading partners. Explain.
Question 3. How does the Leontief paradox challenge the overall applicability of the factor-endowment model?
Question 4. According to Staffan Linder, there are two explanations of international trade patterns-one for manufacturers and another for primary (agricultural) goods. Explain.
Following that speech, the audience asks you to respond to the following question:
Describe a specific tariff, an ad valorem tariff, and a compound tariff. What are the advantages and disadvantages of each?
Write the text of your speech and your response to the question as a Word document, including APA citations for all sources you use.
Objective: Explain the macroeconomic and microeconomic concepts and how they relate to the management of a global organization.
Critically analyze and evaluate real-life economic problems and opportunities by applying economic concepts, principles, and theory.
Examine current global economic and political policies and their impact on business decisions.
Use effective communication techniques.
Comments:
For the discussion of the Ricardian model, and the Heckscher-Ohlin Model, first explain the models in simple terms. For example, for the Ricardian model explain key concepts such as opportunity costs, specialization, gains from trade, and comparative advantage ; and then how they are linked. For the H-O model, explain how it extends the Ricardian model, ie, how does it explain which country might have a comparative advantage in a particular area.
Answer the rest of the questions one at a time.