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How the New theories of International trade relate to the theory of comparative advantage (use a country of your choosing as the vehicle to explain your views) 200 words
A recent merger of note is that of Hewlett Packard and Compaq Computers. When the merger was announced, it was widely criticized as not making economic sense.
Suppose that government imposed a price ceiling on gasoline in order to save prices from getting too high. What are the economic implications of this action in the gasoline markets?
A contractor for the U.S. Defense Department produces airplanes from capital (K) and labor (L) by the production function: A = K times L 2 The marginal product of labor (MPL) = 2KL. The marginal product of capital (MPK) = L 2 .
Draw the production possibility frontier for the Home country with cloth on the horizontal axis and food on the vertical axis. Suppose the economy is engaged in free trade and the free trade relative price of cloth is given.
What is the opportunity cost of producing rice in US??Confirm the existence of comparative advantage by computing opportunity costs and filling in the table below. What is the pattern of comparative advantage?
Assume that a nation declares that it is moving toward free trade through decreasing its tariffs on intermediate inputs while maintaining its tariffs on final goods.
The market for chicken sandwich, considered a normal good, is in equilibrium. Analyze the effect of the following events on equilibrium price and equilibrium quantity of chicken sandwich.
Assume GM is planning purchasing a plant in Hungary. All sales will be to Hungarian customers and denominated in forints. The projected returns and investments are as follows:
Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market.
Until the 25-century, Latin was the language used between the educated and within literature. Research and report on origins of vernacular language, and its spread.
For multinational corporations, friction expenses occur where practices of the company are seen through the public as exploitative or unethical.
Suppose that a country's real growth is 2% a year, while its real deficit is rising 5% per year. Can the country continue to afford such deficit indefinitely?
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