trade models, International Economics

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Economic decline, Q. In 1986, the price of oil on world markets dropped sha...

Q. In 1986, the price of oil on world markets dropped sharply. Since the United States is an oil-importing country, this was widely regarded as good for the U.S. economy. Yet in

Coordination of monetary policies and greater exchange rate, Q. What prompt...

Q. What prompted the EU countries to seek closer coordination of monetary policies and greater exchange rate stability in the late 1960s? Answer: 1. To improve Europe's role

Types of international transactions, Q. What types of international transa...

Q. What types of international transactions are recorded in the balance of payment accounts? Answer: Three kinds' transactions that involve exports and imports of goods and s

Heckscher-ohlin theory, Q. Countries do not in fact export the goods the H...

Q. Countries do not in fact export the goods the H.O. theory predicts. Discuss. Answer: This statement isn't true that though one may find several cases where it seems to be

Fiscal or monetary policy can lead to full employment, Q. A naïve implicati...

Q. A naïve implication of the DD - AA framework is that either fiscal or monetary policy can lead to full employment. Discuss why this view is naïve. Answer: 1. Inflation m

Treflers case of missing trade, Q. The Heckscher-Ohlin model is famous for ...

Q. The Heckscher-Ohlin model is famous for being elegant and mathematically sophisticated, yet failing to define reality. One manifestation of this fact is Trefler's Case of Missi

Getting the Benefits from Technological Progress, What is the significance ...

What is the significance of the observations made by OECD in this case study regarding “The OECD economies are more strongly dependent on the production, distribution and use of kn

Specific factors of international trade, Q. The Specific Factors model mak...

Q. The Specific Factors model makes a distinction between general-purpose factors that can move between sectors and factors that are specific to particular uses. How do difference

Conditions of domestic internal scale economies, Q. Why is it that an indu...

Q. Why is it that an industry is performing under conditions of domestic internal scale economies (applies to firm in the country) - then the resultant equilibrium can't be consis

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