Discussion on international trade

Assignment Help International Economics

Reference no: EM1376411

1) China and Japan have two factors of production, land and labor. Both countries produce two goods, corn, which requires more land, and computers, which requires more labor. Given that China is abundant in land and Japan is abundant in labor, what will be the effect on the terms of trade an increase in Japan's labor supply? What will be the welfare effect of a decrease in land used for corn in China?

2) Explain what each of the following terms are, and explain how each is used in the standard model.
isovalue lines
production possibilities frontier
indifference curve

3) If rice production is land intensive and computer production is labor intensive, though both good require some land and labor, the two-good production possibilities frontier will change in which of the following ways given an increase in available labor?
The curve will outward or inward ? will it biased toward computers or rice ?

Reference no: EM1376411

Questions Cloud

Initial equilibrium position in curve diagram : Assume that, from an initial equilibrium rank in the offer curve diagram, nation I imposes a tariff on country II's export good at the same time that customers in country II change their tastes toward wanting more of II's export good.

Explain a drawback for us consumers : The world is becoming increasingly interdependent, and bank consumers have rising choices in where and how they do their banking.

Discuss the behavior of an oligopoly : What did Adam Smith mean when he wrote "Seldom do businessmen of the same trade get together but that it results in some detriment to the general public"?

Free trade and tax burden : Dicuss and describe the factors that determine who actually bears the burden of a tax increase on a specific goods, such as gasoline, cigarettes, or some other item.

Discussion on international trade : China and Japan have two factors of production, land and labor. Both nations manufacture two products, corn, which requires more land, and computers, which requires more labor.

Describe the prisoners dilemma : Consider the following data, and answer the questions given below. China and England are international trade partners. The following data are expected payoffs for two nations.

Find the name of current wto round of trade negotiations : Determine the WTO and how its relate to international trade? Dicuss how many nations belong to the WTO? What did the Uruguay Round (1994) of WTO trade negotiations accomplish?

Define international trade and its effect : One of your relatives advices to you that our nation should stop trading with other nations because imports take away jobs and lower our national well-being.

Handling international trade payments : Examine the choices MNEs have for handling international trade payments. What are the main issues that affect their decisions? Describe your reasoning.

User Account

All Pages