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Q. Using the diagram, show what happens to the composition of production (that is quantity of cloth per 1 unit of food) in Australia once trade is established between the two countries. Which country will export cloth? What occurs to the relative income of workers in Australia as a result of trade? Does it decrease or increase? Could land owners in Australia lobby for or against free trade?
Answer: The proportion of food to cloth will enhance in the production of Australia Sri Lanka will export cloth. The real and relative incomes of workers will fall in Australia as a result of trade. Land Owners in Australia must lobby in favour of trade.
Q. What is the Fisher Effect? Provide an example. Answer: All moreover equal a rise in a country's expected inflation rate will ultimately cause an equal rise in the i
Q. Using the diagram, show what happens to the composition of production (that is quantity of cloth per 1 unit of food) in Australia once trade is established between the two coun
Discuss the exceptional supply curve
Question: (a) Illustrate the differences between inter and intra industry trade. (b) Foreign Investors generally tend to adopt a two-stage process when evaluating count
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Q. Explain how the German Bundesbank gained its low-inflation reputation. Answer: Essentially Germany's experience with hyperinflation in the 1920s and yet again aft
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