Comparative advantage and trade

Assignment Help Business Management
Reference no: EM131491803

Comparative advantage and trade: Suppose there are two goods in the world, beer and chips. The world consists of four economies: Elbonia, Genovia, Kina- kuta, and Sodor. Labor is the only input into production, and one unit of labor can produce beer and chips in each of these economies according to the fol- lowing table:

Country Bottles of beer Bags of chips

Elbonia 5 5

Genovia 5 10

Kinakuta 10 5

Sodor 10 10

(a) Prices are expressed in units of bags of chips, so the price of a bag of chips is 1. What is the price of a bottle of beer in each economy when there is no trade?

(b) Now suppose we let two countries trade with each other (keeping the oth- ers closed). There are six possible trading pairs: EG (Elbonia-Genovia), GK (Genovia-Kinakuta), KS, EK, GS, and ES. For each case, explain who exports beer and who exports chips, and why.

Reference no: EM131491803

Questions Cloud

Incremental cost-effectiveness ratio comparing : According to Lee et al. (2009), the incremental cost-effectiveness ratio comparing the current dialysis treatment to the next least cost dialysis treatment.
Effect a potential company to enter the market : How can you determine what are the different barriers for each market structure and how would they effect a potential company to enter the market?
Design a simple two-company game : Design a simple two-company game that illustrates why it might have been in the economic interests of the cigarette companies to support the ban.
Clearly identify vulnerabilities in the code samples : Programming Secure Software Systems Case Study: Safe programming issues. Clearly identify vulnerabilities in the code samples
Comparative advantage and trade : Suppose there are two goods in the world, beer and chips. The world consists of four economies: Elbonia, Genovia, Kina- kuta, and Sodor.
Define a broadcast domain : What is the command line interface used for on a Cisco router?
How would you explain the finding : How would you explain the finding that people in high-income economies seem happier than people in low-income economies, but, people in high-income economies?
Why does an aggregate demand curve slope downward : Why does an aggregate demand curve slope downward? Briefly explain. How are economic fluctuations linked among national economies?
Difference between training and induction : Show the Difference between training and induction

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd