Demand reversal were the cause of leontief paradox

Assignment Help Business Economics

Reference no: EM13893238

The text notes that, if demand reversal were the cause of the Leontief paradox, then labor would be relatively cheap in the United States. Explain the reasoning behind this statement.

Reference no: EM13893238

Questions Cloud

Explaining trade between developed-developing countries : Suppose someone stated that the Heckscher-Ohlin model is best-suited for explaining trade between developed countries and developing countries, while newer theories such as those of Linder and Krugman are best-suited for explaining trade among develo..

Determine relative factor abundance across countries : If economists wish to determine relative factor abundance across countries, why don’t they simply calculate w/r ratios across countries and then compare these ratios?

Union subsidizes its exports of agricultural products : The European Union has heavily protected its farm sector through import duties; in addition, the Union subsidizes its exports of agricultural products. If “cropland” is regarded as a factor of production and is included in the Leontief statistic (alo..

Linder hypothesis must necessarily offer good explanation : Suppose that you test the Linder hypothesis by comparing Germany’s absolute difference in per capita income from each of its trading partners with the size of Germany’s total trade with each respective partner. You find a strongly negative correlatio..

Demand reversal were the cause of leontief paradox : The text notes that, if demand reversal were the cause of the Leontief paradox, then labor would be relatively cheap in the United States. Explain the reasoning behind this statement.

Factor-intensity reversals were indeed prevalent : If factor-intensity reversals were indeed prevalent in the real world, how might this fact be used to explain the Leontief paradox? If this explained the paradox, would it suggest that any given U.S. trading partner stood a better chance of conformin..

Factor-content approach reveals : How can it be said that the factor-content approach “reveals” a country’s factor abundance? What assumptions seem crucial for making this inference? Explain.

What is the difference between gross domestic product : What is the difference between gross domestic product (GDP) and gross national product (GNP)? What is the difference in what GDP measures compared to GNP? Based on the table, what calculations must you make to determine GNP from GDP?

What will be the total increase in nominal gdp : All other things being equal, by how much will nominal GDP expand if the central bank increases the money supply by $100 billion, and the velocity of money is 3? Suppose now that economists expect the velocity of money to increase by 50% as a result ..

User Account

All Pages