Question

In: Economics

Suppose that you are a semi-skilled (lowly-skilled) worker employed in a labor-intensive industrial sector. Your country...

Suppose that you are a semi-skilled (lowly-skilled) worker employed in a labor-intensive industrial sector. Your country is capital abundant, that is, its endowment of capital relative to other factors is large compared to its major trading partners. Explain your policy preferences about international trade, foreign investment, and immigration.

Solutions

Expert Solution


New slide

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

If I am a low-skilled worker in a labor intensive, capitally high country(rich), would I prefer...
If I am a low-skilled worker in a labor intensive, capitally high country(rich), would I prefer direct foreign investment or portfolio investment as policy? Can you please elaborate why?
Suppose that a Home country is a labor-abundant country, and produces bananas (labor intensive) and computers...
Suppose that a Home country is a labor-abundant country, and produces bananas (labor intensive) and computers (capital intensive). Given all the theory and assumptions of the Heckscher-Ohlin model holds true, answer the following questions: A). Draw and explain in a graph the free trade equilibrium for Home Country (Remember PPFs? Make sure to clearly indicate the production point, the consumption point, and the quantity of exports and imports). B). In the graph drawn above for question (a), show the effects...
Suppose that a Home country is a labor-abundant country, and produces bananas (labor intensive) and computers...
Suppose that a Home country is a labor-abundant country, and produces bananas (labor intensive) and computers (capital intensive). Given all the theory and assumptions of the Heckscher-Ohlin model holds true, answer the following questions: A). Draw and explain in a graph the free trade equilibrium for Home Country (Remember PPFs? ! Make sure to clearly indicate the production point, the consumption point, and the quantity of exports and imports). B). In the graph drawn above for question (a), show the...
Suppose a country experiences a significant immigration of labor. Further, this country produces both labor-intensive and...
Suppose a country experiences a significant immigration of labor. Further, this country produces both labor-intensive and capital intensive goods. According to the Rybczynski theorem, what changes in the production of the two type of goods should we anticipate because of the labor immigration? Be sure to use the Rybczynski theorem to answer the question.
The economy of a certain country has a labor-intensive manufacturing sector. One of its components is...
The economy of a certain country has a labor-intensive manufacturing sector. One of its components is the furniture industry, which has many producers and generates a good return on profits. However, global situations cause operating costs to increase and to a lesser or greater extent affect this industrial sector, which is very competitive. The A&H Furniture company, specialized in rustic furniture, operates in this industry and distributes both for the local and international markets. Given the increase in operating costs...
Suppose that there are two countries; Country 1 and Country 2. Country 1 is capital abundant and country 2 is labor abundant. X is capital intensive and Y is labor intensive.
Suppose that there are two countries; Country 1 and Country 2. Country 1 is capital abundant and country 2 is labor abundant. X is capital intensive and Y is labor intensive. Assume that Country 1 is a large country and country 2 is a small country.Answer the following questions:a) Suppose that Country I's capital stock increases. Show the pregrowth and after growth production and consumption points on a figure. Clearly explain how the production and consumption of commodity X and...
Suppose there are two countries (a capital-abundant country and a labor-abundant country) and two goods (labor-intensive...
Suppose there are two countries (a capital-abundant country and a labor-abundant country) and two goods (labor-intensive good X and capital-intensive good Y). The two countries have identical demand for the two goods and are considering forming a free trade agreement. However, while this agreement received support from most voters in country A, many voters in country B were concerned that the agreement will likely widen income inequality in country B. Please identify which country is likely labor abundant and which...
Suppose that a relatively capital-abundant country is exporting the capital- intensive good and importing the labor-intensive...
Suppose that a relatively capital-abundant country is exporting the capital- intensive good and importing the labor-intensive good, but that the “specific- factors” model of Chapter 8 applies rather than the Heckscher-Ohlin model. Assess the effect on the return to labor of the imposition of a tariff on the labor- intensive good.
Suppose there are two goods, cameras and DVRs, produced in a country. Cameras (Qc) are labor-intensive...
Suppose there are two goods, cameras and DVRs, produced in a country. Cameras (Qc) are labor-intensive and DVRs (Qd) are capital-intensive in their production. The wage paid to labor is w and the rent on capital is r. We assume the country to be capital-abundant and the relative price of cameras to price of DVRs is Pc . The country undertakes an agreement withPd its trading partner which lowers the price of imports, leading to higher levels imports. (a) Write...
Suppose low skilled labor and capital are substitutes but high skilled labor and capital are complements....
Suppose low skilled labor and capital are substitutes but high skilled labor and capital are complements. Over the past 45 years the price of capital has dropped substantially because of the computer revolution. Draw and explain 2 labor market diagrams To show what has happened to the demand for high and low skilled labor Now add new supply curves to your diagrams to show the effect of an increase in the number of high skilled workers and a decrease in...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT