Production and consumption of Smartphones and Smart cars for the Republic of Westein and Republic of Eastein are shown below. Use the information and your answers in question 2 to answer the questions below: Westein Eastein Output per hour of worked Smartcar 750 4500 Smart Phone 500 750 a) If both countries specialize, determine the maximum quantity that can be produced. b) If the term of trade is 1 smartphone to 1 smart car, determine the gains from trade. c) For both countries, use a simple labour demand and supply graph to show the impact of specialization and trade on the wage of workers in the smart car industry.
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- 1. Gains from trade Consider two neighboring island countries called Dolorium and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Country Dolorium Contente Jeans Rye (Pairs per hour of labor) (Bushels per hour of labor) 20 16 Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Dolorium uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Dolorium produces 15 million pairs of jeans and 20 million bushels of rye, and Contente produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.…Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.3. Gains from trade Consider two neighboring island countries called Bellissima and Felicidad. They each have 4 million labor hours available per week that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor. Country Bellissima Felicidad Rye (Bushels per hour of labor) 8 5 Jeans (Pairs per hour of labor) 16 20 Initially, suppose Bellissima uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Felicidad uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Bellissima produces 8 million bushels of rye and 48 million pairs of jeans, and Felicidad produces 15 million bushels of rye and 20 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and…
- Question & Use the table to answer the question. Apples Bananas Country A Country B 800 500 O a O b Ос Od 1500 If all resources of Country A and Country B were dedicated toward the production of either apples or bananas, the maximum production of each is summarized in the table above. In order for both countries to benefit from trade, which country should specialize in banana productio and why? 1600 Review Answers Country A since it has the absolute advantage in banana production. Country A since it has the comparative advantage in banana production. Country B since it has the comparative advantage in banana production. Country B since it has the absolute advantage in banana production. Saved at 8:09 am Support | Schoology Blog | PRIVACY POLICY | Terms ofThe following is a productivity schedule for two countries, Pura Cendana and Antah Berantah. (d) Beef Computer (f) Pura Cendana 10 8 Antah Berantah 6 6 Suggest the terms of trade that would be acceptable to both countries. (e) If both countries allocate 60% of their resources in Beef's industry and the remaining 40% in Computer' industry before they trade, construct a table to show production of each country before trade. Assume that both countries decide to trade and resort to complete specialization. Construct a table to show production of each country after trade.With its existing resources Country A can produce either 500 million bushels of wheat or 40 million cars. They are presently not engaged in trade and are choosing to produce and consume 375 million bushels of wheat and 10 million cars. The country decides to completely specialize in wheat production. They trade 100 million bushels of wheat in exchange for 12 million cars. After trade they can consume million more bushels of wheat and million more cars than they could before trade?
- Assume that both the U.S. and Germany produce beef and computer chips with following costs: Unit cost of beef Unit cost of computer chips U.S. DOLLARS Germany MARKS 2 1 8 2 1.What is MRT of beef and computer chips in each country? 2.Draw PPF of two nations under constant cost conditions, how much would the U.S. and Germany gain if 1 unit of beef is exchange for 3chips? K 1-8005What is the range for mutually beneficial trade between the United Kingdom and Spain for each computer chip traded? How much would the United Kingdom and Spain gain if 1 unit of beef is exchanged for 3 chips?Are their any copyrights, trademarks, patents, or trade secrets needed to consider for an e-commerce business that sells imported Honduran coffee beans?
- Auto Volta are planning to launch an import line of electric batteries and electric chargers going in parallel with the global change movement , they will be offering direct installment , maintenance ..etc all what comes within in such type of business with a potential investment (1 million EGP), from your studies : What can be the Barriers of International Trade that they might face in their importing process in the time being where the world is suffering the rise of Corona virus threats Auto Volta are planning to launch an import line of electric batteries and electric chargers going in parallel with the global change movement , they will be offering direct installment , maintenance ..etc all what comes within in such type of business with a potential investment (1 million EGP), from your studies : What can be the Barriers of International Trade that they might face in their importing process in the time being where the world is suffering the rise of Corona virus threatsIn the following table, select the amount of each good that each country exports and Imports In the boxes across the row marked "Trade Action," and enter each country's final consumption of each good on the line marked "Consumption." When the two countries did not specialize, the total production of jeans was 17 million palrs per week, and the total production of rye was 46 million bushels per week. Because of specialization, the total production of jeans has increased by 3 million pairs per week, and the total production of rye has increased by 18 million bushels per week. Because the two countries produce more jeans and more rye under specialization, each country is able to gain from trade. Calculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption"). Dolorium Arcadia Jeans Rye…3. Gains from trade Consider two neighboring island countries called Contente and Euphoria. They each have 4 million labor hours available per month that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Jeans Corn Country (Pairs per hour of labor) (Bushels per hour of labor) Contente 16 Euphoria 20 Initially, suppose Contente uses 1 million hours of labor per month to produce jeans and 3 million hours per month to produce corn, while Euphoria uses 3 million hours of labor per month to produce jeans and 1 million hours per month to produce corn. Consequently, Contente produces 8 million pairs of jeans and 48 million bushels of corn, and Euphoria produces 15 million pairs of jeans and 20 million bushels of corn. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and corn…