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What is The law of comparative advantage
The law of comparative advantage, though, suggests that it would be unwise of UK economy to try to replicate German model. First German firms have already established a leading position in producing high-quality consumer and capital goods and the comparative and absolute advantage is already in its favour. Second, firms in BRIC economies are trying to compete with Germany and other engineering and manufacturing producers. UK firms could attempt to compete however they may struggle since they are unable to employ workers on significantly lower wages. Third the UK should lay emphasis on the industries where it already has comparative advantage namely high-quality design, niche top-end manufacturing and engineering and most prominently services. The southeast of England is home to a number of the world's leading insurance, marketing, financial and legal and consultancy firms. These industries are very difficult to replicate since they are based on the value of the human capital they employ and not physical capital. The UK has already established these industries and must be careful not to lose them. Free-market economists would argue that government would be wiser to listen to advice of David Ricardo and focus on what the nation already does best instead of trying to copy another nation in a superior position
Suppose that you decide to leave your current job(with a salary of $60,000) to start your own business in a building (with a market value of $400,000) you already own. You pay $45,
Design a rectangular patch antenna (substrate: εr = 3, tan-δ=0, h = 0.75 mm) operating at f0 = 2.5 GHz a) Determine the dimensions W and L of the antenna, assume w/λo b) The
Trade-FDI Nexus: Economic liberalization promotes both trade and FDI. FDI could be export-promoting, import substituting or import enhancing depending upon supply and demand f
The following Table summarizes the profits of two firms as a function of their capacity investments levels (you can also interpret these levels as the quantities they produce):
In monopolistic competition: a) Firms face a perfectly elastic demand curve b) All products are homogeneous c) Firms make normal profits in the long run d) There are ba
1) Consumption is positively related to stock market wealth but negatively related to taxes and tax rates.
explanations to the short-run fluctuation and pilicy prescriptions of the schools macroeconomics thought
is/lm curve
Question 1: Consider a two-period, two-person pure exchange economy. Utility functions and endowments are given as follows. u1(x0; x1) = (x0x1)2 and e1 = (18; 4) u2(x0; x1) = ln x0
What are long run and short run? Long run: It is the time period wherein all inputs cannot be fixed. Short run: It is the time period within which at least one in
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