Show albanias comparative advantage, International Economics

Assignment Help:

Q. Now, consider that the relative price of A is actually not higher than Albania's autarkic level of 1, but quite the opposite (e.g. PA/PB = 0.5). Could Albania still be able to gain from trade? If so, where could be its production point? Given the information in this question, where is Albania's comparative advantage?

Answer: Yes as long as the world's terms of trade differed from those of Albania that country stands to increase from international trade. In this particular case its aim of production with trade would be at point c.

31_Show Albanias comparative advantage.png


Related Discussions:- Show albanias comparative advantage

Discuss the problems that the emu will face, Q. Discuss the problems ...

Q. Discuss the problems that the EMU will face in the coming years. Answer: Europe isn't an optimum currency area so asymmetric economic developments within different cou

Explain the law of one price. give an example, Q. Explain the Law o...

Q. Explain the Law of One Price. Give an example. Answer: The law of one price affirms that in competitive markets free of transportation costs and trade barriers ide

Trade Balance, derive the eqilibrium equation for the trade balance

derive the eqilibrium equation for the trade balance

Law of reciporcal demand, offer curves, terms of trade and terms of trade a...

offer curves, terms of trade and terms of trade as a measure of gain

Equation needed, If one were to use the simple monetary model to predict th...

If one were to use the simple monetary model to predict the $/Euro exchange rate (L is constant), what would the expected exchange rate be?

Assignment help, hi can you help me do my assignment?

hi can you help me do my assignment?

Fixed exchange rates, Q. "Fixed exchange rates are not even an option...

Q. "Fixed exchange rates are not even an option for most countries." Discuss. Answer: Durable fixed exchange rate arrangements may possibly not even be possible unless c

Theory of internation trade, oppotunity cost theory of international trade....

oppotunity cost theory of international trade.Explanation of the theory

Discuss differences between absolute ppp and relative ppp, Discuss the diff...

Discuss the differences between Absolute PPP and Relative PPP . Answer:  Absolute Purchasing Power Parity (PPP) states that the exchange rate between two currencies equals the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd