Determination of the absolute and comparative advantage

Assignment Help International Economics

Reference no: EM1375345

Suppose that the following output and labor hours for Russia and Germany in manufacturing Wheat and Cloths

Russia Wheat 3 Cloths 6 Labor Hours 100
Germany Wheat 2 Cloths 2 Labor Hours 50

a. Which country has the comparative advantage in wheat?
b. Which country has the comparative advantage in cloth?
c. Which country has the absolute advantage in wheat?
d. Which country has the absolute advantage in cloth?
e. Which good will Russia specialize in?
f. Which good will Germany specialize in?
g. Give the most obvious terms of trade.

Reference no: EM1375345

Questions Cloud

Multiple choice questions - principle of microeconomics : Movie theaters often offer decreased rates for children under ten. This suggests that tht demand for adult admission is

During the process what quilt shop managers analyze : Illustrates what capacity planning involves acquisition or disposal of fixed assets like buildings, equipment or facilities. Describe goals which they will pursue also decide upon specific actions for each area of the organization to take in pursui..

Was reallocation of fixed costs across divisions unethical : If a division is reporting losses, does that essentially mean that it should be closed and was reallocation of fixed costs across divisions unethical?

Examine full-cost and variable-cost transfer : Examine the effect of both full-cost and variable-cost transfer pricing methods on Phipps' cash flows using a spreadsheet program such as Excel.

Determination of the absolute and comparative advantage : Suppose that the following output and labor hours for Russia and Germany in manufacturing Wheat and Cloths

Illustrate what degree does vertical integration exist : Be as creative also innovative as you need. Imagine which you are one of his top advisors also which he will take your suggestions seriously." Tour C & D A batch flow process also A machine paced line flow process, illustrate what degree does ver..

Determine her retirement plan : Kim is determining her retirement plan. Consider she has $500,000 when she retires in an account that earns at an effective annual rate of 9 percent.

Describe the availability in each of these cases : Critique the work breakdown structure (WBS) created by the private organization also recommend three or four alterations you would make to the WBS also why.

Interests of the various stakeholders : For multinational corporations, friction expenses occur where practices of the company are seen through the public as exploitative or unethical.

User Account

All Pages