1. Discuss why the assumptions of identical, constant-returns-to-scale technologies and no-factor-intensity-reversals are important for the Heckscher-Ohlin...

1. Discuss why the assumptions of identical, constant-returns-to-scale technologies and no-factor-intensity-reversals are important for the Heckscher-Ohlin theorem.

Expert Solution

Rahul Sunny answered 2 years ago

. Heckscher-Ohlin Model A. Assumptions of the model B. Factor abundance and the shape of the...

. Heckscher-Ohlin Model A. Assumptions of the model B. Factor abundance and the shape of the PPF C. Factor abundance and the pattern of trade D. Graphical representation of effect of trade on Production and consumption E. Effect of trade on labor demand and factor prices F. The Leontieff paradox

The factor proportions, or Heckscher-Ohlin, theorem remains the most important single theory of why relative prices...

The factor proportions, or Heckscher-Ohlin, theorem remains the most important single theory of why relative prices differ before trade, providing insights into the relationship between commodity trade and factor endowments. Provide a common-sense conclusion that can be drawn from this theorem. Discuss two implications of the factor proportions theorem.

1. Assume that the assumptions of the Heckscher-Ohlin model are holding. There are two inputs, labor...

1. Assume that the assumptions of the Heckscher-Ohlin model are holding. There are two inputs, labor and capital. There are two goods, automobiles and clothing. Automobiles are capital-intensive, and clothing is laborintensive. Assume that Canada is the relatively capital abundant country. Answer the following questions about the effect of trade on Canada: a. As it begins to trade, which good will Canada export, and which good will Canada import? b. What will happen to the price of automobiles and the...

Illustrate and discuss the difference between constant, Increasing and decreasing returns to scale.

1-Why Turkey has comparative advantage in some industries, in terms of Heckscher – Ohlin approach to...

1-Why Turkey has comparative advantage in some industries, in terms of Heckscher – Ohlin approach to international trade. 2-Design your own international trade policy concerning Turkish economy.

Indicate whether the following statement is true/false/uncertain and explain why: 1. The Heckscher-Ohlin-Samuelson theory is likely...

Indicate whether the following statement is true/false/uncertain and explain why: 1. The Heckscher-Ohlin-Samuelson theory is likely to explain the rise of the skill premium in the US and other industrialized countries in recent decades, because in the data we have observed a rise in the price of skill-intensive goods relative to unskilled labor-intensive goods over the same period. 2. In the Melitz model if the transport cost t is zero then opening up to trade does not force the least...

1) Which of the following production functions exhibits constant returns to scale? A) q = KL...

1) Which of the following production functions exhibits constant returns to scale? A) q = KL B) q = KL0.5 C) q = K + L D) q = log(KL) 2) Why do firms tend to experience decreasing returns to scale at high levels of output? A) Firms face more problems with coordinating tasks and communications among managers and workers at very high levels of output. B) Government tax policy tends to discourage large-scale production operations. C) Firms face fewer...

1: Do the following functions exhibit increasing, constant, or decreasing returns to scale? What happens to...

1: Do the following functions exhibit increasing, constant, or decreasing returns to scale? What happens to the marginal product of each individual factor as that factor is increased, and the other factor is held constant? a. q = (L 0.5 + K 0.5) 2 b. q = 3LK2 c. q=L0.3 K 0.6

Please discuss what economy of scale is all about? why is it important in business and...

Please discuss what economy of scale is all about? why is it important in business and in the country? do some search about it

1) Explain why teansportation is an important factor to consider in SCM for transporting goods? 2)...

1) Explain why teansportation is an important factor to consider in SCM for transporting goods? 2) Identify one major advantge and one major disadvantage of the 5 major modes of transportation?

Question