Qthis problem uses the heckscher-ohlin model to predict the

Assignment Help Business Economics

Reference no: EM13354313

Q. This problem uses the Heckscher-Ohlin model to predict the direction of trade. Consider the construction of handmade rugs moreover assembly line robots in Canada and India.

a. Which country would you expect to be relatively labor-abundant also which is capital abundant and why?

b. Which industry would you expect to be relatively labor-intensive also which is capital intensive and why?

c. Given your answers to (a) and (b) also draw production possibilities frontiers for each country.

Assuming that consumer preferences are the same in both countries, add indifference curves and relative price lines (without trade) to your PPF graphs. Explain what the slopes of the price lines tell you about the direction of trade?

d. Allowing for trade between countries, redraw the graphs and include a "trade triangle" for each country. Identify and label the vertical and horizontal sides of the triangles as either imports or exports.

Reference no: EM13354313

Questions Cloud

Q1 does a merger create any new value that wasnt there : q1. does a merger create any new value that wasnt there before? or is the merger done to lower afc and so atc? can we

Q1 1 herzberg concluded that pay was not a motivator if you : q1. 1. herzberg concluded that pay was not a motivator. if you were paid to get better grades would you be motivated to

Qsuppose when russia opens to trade which introduced : q.suppose when russia opens to trade which introduced automobiles a capital-intensive good.a. according to the

Q1 an outfielder throws a 0150 kg baseball at a speed of : q1. an outfielder throws a 0.150 kg baseball at a speed of 50.0 ms and an initial angle of 30.0deg. what is the kinetic

Qthis problem uses the heckscher-ohlin model to predict the : q.this problem uses the heckscher-ohlin model to predict the direction of trade. consider the construction of handmade

Q1 y fk l a k04l10a calculate the marginal product of : q1. y fk l a k0.4l1.0a calculate the marginal product of labor mplb does this production function exhibit diminishing

Q1 a pet-store supply truck moves at 25ms north along a : q1. a pet-store supply truck moves at 25ms north along a highway. inside a dog moves at 1.85ms at an angle of 35deg

Q1 consider how the components of gross domestic product : q1. consider how the components of gross domestic product gdp fit with the circular flow model. what does gdp measure?

Q1 what effect will increase in temperature from 25 degree : q1. what effect will increase in temperature from 25 degree celsius to 32 degree celsius of the metal metre stick have

User Account

All Pages