Why did you select particular trading partner

Assignment Help International Economics

Reference no: EM13815479

"The Heckscher-Ohlin Trade Theory is about how two countries can get greater gains from trading with each other if they have different resources - one have more labor and the other have more capital (that is technical equipment and machinery).

By specializing in production, and by trading with other countries, it is possible for countries to increase their incomes. Even though countries as a whole benefit from specialization and international trade, all groups in society, workers and capitalists, do not gain according to the Heckscher-Ohlin theory. If international trade leads a country to specialize in producing goods that require lots of workers and little capital, such a specialization increases wages (which benefits the workers) but decreases the income of the capital owners. But the country as a whole benefits because the gain of the workers is bigger than the loss of the capital owners.

The Trade Ruler game is set in "the Hechscher-Ohlin world" you are to make an island (a country) prosper by trading. As a ruler of an island you want to engage in international trade to achieve this goal" (Nobel Media, 2011).

After playing the game (estimated to last about 15 minutes), answer the following questions in the form of a short essay. Your completed essay should be at least 250 words in length:

1. Did your selected country have more labor or capital?

2. Why did you select this particular country?

3. Did your selected trading partner have more labor or capital?

4. Why did you select this particular trading partner?

5. Did you increase or decrease the welfare of your country by engaging in international trade? Why?

Reference no: EM13815479

Questions Cloud

What are possible opportunity costs of opening arctic lands : What are possible opportunity costs of opening Arctic lands to private extraction of as-yet unavailable resource endowments?

Produce and sell the quantity and type of goods and service : The first paragraph gives two goals desired by society that the pure market economy is largely successful in reaching and explains why the market is able to attain these goals. produce and sell the quantity and type of goods and service that people w..

Federal government attempts to eliminate a budget deficit : If we passed a constitutional amendment requiring a balanced budget every year, this would probably. During the course of a bad recession the fed would probably be doing each of the following, except. If, during a depression, the federal government a..

Unlicensed occupations than in licensed occupations : Why do you suppose that employment growth is about 20 percent greater in unlicensed occupations than in licensed occupations? What do you suppose a typical state government does with the millions of dollars of occupational license fees it receives ea..

Why did you select particular trading partner : Did your selected country have more labor or capital and why did you select this particular country?

How do destructive traits affect a business : Can destructive traits travel through other departments such as logistics, human resource, accounting and various other departments?

Hrm describe how the agency implements the relevant law : As the human resources manager, it is your responsibility to keep all human resources employees informed about current employment law. You want to empower employees with resources that they can use independently to research employment law issues and ..

Evaluate the negotiations between tom reed and jane axle : Evaluate the negotiations between Tom Reed and Jane Axle. What are your recommendations for Jane Axle as far as the next step in the negotiation process?

Hrm benefits policy that encompasses the scope of benefits : Create a benefits policy that encompasses the scope of benefits and a brief administrative section to address how benefits will be administered in your organization. Include a section on the roles necessary to carry out the policy within the organiza..

User Account

All Pages