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

External economic environment on the project, The external economic environ...

The external economic environment could have implications for the project in various areas. There is no tax in Saudi Arabia; this is a significant political effect on the projec

International economics, opportunity cost version is an improvement over th...

opportunity cost version is an improvement over the classical theory of international trade?comment

INTERNATIONAL TREAD, WHATE IS THE PROPERTY OF OFFER CURVE OF A COUNTRY

WHATE IS THE PROPERTY OF OFFER CURVE OF A COUNTRY

What can explain failure of relative ppp to hold in reality, What can expla...

What can explain the failure of relative PPP to hold in reality? Answer: Government procedures of the price level differ from country to country. One cause for these differe

Supply and Demand, Assess the supply and demand of international reserves. ...

Assess the supply and demand of international reserves. Discuss the major determinants of the demand for international reserves: 1.) the monetary value of international transaction

Terms of trade and economic welfare, 2. If a country's growth is biased in...

2. If a country's growth is biased in favor of its import, this should unequivocally improve its terms of trade and its economic welfare. Discuss. Answer: Suppose the Japan

Terms of trade, 1.concepts of terms of trade,factors affecting terms of t...

1.concepts of terms of trade,factors affecting terms of trade. 2.gross & net barter terms of trade. 3.terms of trade & economic development

Trade, What are the reasons behind the growing importance of services in tr...

What are the reasons behind the growing importance of services in trade ?

Macroeconomic policy-making and performance, Q. How did the international m...

Q. How did the international monetary system influence macroeconomic policy-making and performance during the interwar period (1918 - 1939)? Answer: Governments efficiently sus

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