Situation: Suppose there are two countries, Germany and India, and two goods, bicycles and textiles. Germany...

Situation: Suppose there are two countries, Germany and India, and two goods, bicycles and textiles. Germany has a resource endowment of 42,444,325 units of labor and 8,873,941 million units of capital, while India has a resource endowment of 475,090,729 units of labor and 10,299,894 million units of capital. Each bicycle requires 100 units of capital and 10 units of labor to produce, and each unit of textiles requires 40 units of capital and 2 units of labor to produce.

Question: Which country will export which good once these countries open up to trade?

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Rahul Sunny answered 1 year ago

Situation: Suppose there are two countries, Germany and India, and two goods, bicycles and textiles. Germany...

Situation: Suppose there are two countries, Germany and India, and two goods, bicycles and textiles. Germany has a resource endowment of 42,444,325 units of labor and 8,873,941 million units of capital, while India has a resource endowment of 475,090,729 units of labor and 10,299,894 million units of capital. Each bicycle requires 100 units of capital and 10 units of labor to produce, and each unit of textiles requires 40 units of capital and 2 units of labor to produce. Question:...

Consider two countries, Germany and Italy, which produce two goods, beer and cheese. The labour requirements...

Consider two countries, Germany and Italy, which produce two goods, beer and cheese. The labour requirements (in hours) for producing one unit of these goods in each country are: Beer Cheese Germany aLB = 2 aLC = 3 Italy aLB* = 5 aLC* = 4 Which country has the absolute advantage in the production of beer and which in the production of cheese? (Mark: 0.2) Which country has the comparative advantage in the production of beer and which in the...

EXERCISE 18.5 COMPARATIVE ADVANTAGE Suppose that there are only two countries in the world, Germany and...

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Suppose there are just two countries, the US and Germany. Consider the following: US Current Account...

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suppose two countries, France & Germany, use only capital and labor for production. France has 2050...

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In a Heckscher-Ohlin model, suppose there are two countries: Scotland and Portugal. Two goods are produced...

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Situation: Suppose there are two countries, Germany and India, and two goods, bicycles and textiles. Germany...

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Situation: Suppose there are two countries, Germany and India, and two goods, bicycles and textiles. Germany...

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