Question

In: Economics

Q1. A student from one of the least developed country claimed that her home country would...

Q1. A student from one of the least developed country claimed that her home country would not be able to benefit from international trade because the country was the absolute worst in producing everything and was lack of all kinds of resources. Do you agree with her argument? Use your knowledge of the three trade models (The Ricardian Model, the HO Model and the Krugman Model) to support your answer.

Solutions

Expert Solution

Answer:

Q1.

agree or not with student argument:

YES

the claim of the student is correct that her least developed home country would not be able to benefit from international trade because the country was absolute worst in producing everything and was lack of all kinds of resources.

Reason:

A country benefits from international trade when it has comparative advantage of a product over another country and vice-versa depending on technological differences across nations.

Again, countries benefit from international trade when they export products that use their abundant and cheap factors of production and import products that use their scarce resources.

Lastly, consumers prefer a diverse choice of brands and the production favours economies of scale.

Each country benefits when they specialize in producing a few brands of any given type of product instead of specializing in different types of products taking into consideration economies of scale.

Hence. i agree with the student.


Related Solutions

Q1. Select an organization within your home country and evaluate the following from the perspective of...
Q1. Select an organization within your home country and evaluate the following from the perspective of that organization. (a). The layers of the macro-environment. (b). What identifiable key drivers to shape global strategy can you identify for this organization?
1. How marketing in emerging country is different from developed country?
1. How marketing in emerging country is different from developed country?
A seller would like to net $250,000 from the sale of her home. If closing costs...
A seller would like to net $250,000 from the sale of her home. If closing costs are expected to be $4,000 and the real estate commission is 6%, her home must sell for what price?
Identify one already developed country and one developing country. Research their recent economic growth rates ....
Identify one already developed country and one developing country. Research their recent economic growth rates . Analyze differences in the countries that would help lead to different rates of economic growth. In your response, be sure to avoid analyzing short-run factors of economic performance and focus on the factors that affect long-run economic growth.
On the basis of her newly developed technique a student believes she can reduce the amount...
On the basis of her newly developed technique a student believes she can reduce the amount of time schizophrenics spend in an institution. As director of training at a nearby institution, you agree to let her try her method on 20 schizophrenics, randomly sampled from your institution. The mean duration that schizophrenics stay at your institution is 85 weeks and the scores are normally distributed. The results of the experiment show that the patients treated by the student's new method...
37. SHORT ESSAY – If you had to move from your home country to ONE other...
37. SHORT ESSAY – If you had to move from your home country to ONE other country SOLELY because of its benefits practices, to which ONE country would you move and why? (Use space provided.)
Q1. Using your home country, Jamaica, select an organization with a competitive advantage to examine how...
Q1. Using your home country, Jamaica, select an organization with a competitive advantage to examine how their strategies are implemented. a. Why would you classify the organization as having a competitive advantage in the respective market? b. What types of strategies does this organization employ? c. As a critical thinker, are there any strategies that you think this organization should implement and/or eliminate? Why?
Candice was a high school student on the track team and training for her upcoming cross-country...
Candice was a high school student on the track team and training for her upcoming cross-country meet. She woke up bright and early to complete a 10-mile run. Her workout ended up taking her a little longer than usual and she was sweating profusely. As Candice cooled down from her run, Candice’s Mom yelled from the kitchen, “Candice, your breakfast is ready! Come eat. You look so pale!” “Oh, really? I’m starving; maybe that’s why? What did you make?” “Your...
Joan Nguyen recently claimed that the proportion of college-aged males with at least one pierced ear...
Joan Nguyen recently claimed that the proportion of college-aged males with at least one pierced ear is as high as the proportion of college-aged females. She conducted a survey in her classes. Out of 116 males, 21 had at least one pierced ear. Out of 83 females, 49 had at least one pierced ear. Do you believe that the proportion of males with at least one pierced ear is different from the proportion of females with at least one pierced...
Q1(A) . Try to think at least one personal example of each of these concepts: Cognitive...
Q1(A) . Try to think at least one personal example of each of these concepts: Cognitive map, latent learning , discovery learning.(B) Describe a skill you have learned primarily through observational learning. How did modeling help you learn? (150 POINTS) Q2 (B). Think about how you’ve used your memory in the last hour. Identify an example of each of the following: a procedural memory, a declarative memory, a semantic memory, and an episodic memory.(150 POINTS) Q3. (A) Can you think...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT