Which one? If not, what economic system do you think your nation runs? 2. In the space below, organize your economic data. Highlight statistics that you think would indicate that your country runs a market-oriented economy.
In determining which goods to import from which country and which goods to export, I encountered some of the advantages and some limitations of the international trade. According to the theory of comparative advantage, a country should specialize in the production and export of commodities that it can produce at a lower opportunity cost than other countries while it should import commodities that are produced at a lower opportunity cost than other countries. Limitations such as imposing a quota or tariff can raise the price of products and lead to a loss in consumer surplus or cause retaliation from the country therefore reducing the goods a country is able to export. There are factors that influence the foreign exchange rate which also has an impact on a country’s importing and exporting. Regardless of these things, international trade is important to a countries
C) number of jets increases and the opportunity cost of jets decreases. D) amount of wheat increases and opportunity cost of wheat decreases. E) opportunity cost of jets and wheat both increase. Answer: A Topic: Opportunity cost Skill: Level 4: Applying models Section: Checkpoint 3.2 Status: CD AACSB: Reflective thinking 27) Why is a production possibilities frontier bowed out (concave)? A) The bowed shape reflects constant opportunity cost.
Homework 2_Answer(Chapters 4-7) Australia is land abundant; India is labor abundant. Wheat is land intensive relative to textiles. (a) Graphically demonstrate the pre- and post-trade equilibria between these two countries. (b) Find and label the trade triangles for each. (c) Which factors gain and which factors lose when trade arises between these two countries?
Discuss surplus-enhancing transactions in markets 6. Explain how elasticity affects the way in which the burden of a per-unit tax is shared between buyers and sellers 7. Explain how elasticity affects the size of the deadweight loss created by a per-unit tax **NOTE: All of chapter 5 of Hubbard, Garnett, Lewis and O’Brien (2011) Microeconomics, 2nd edition, Pearson is required reading. 1. Consumer surplus The difference between the highest price a consumer is willing to pay for a good or service, and the price they actually pay.
Currency risk- if unexpected changes in currency values affect the value of the firm 4. Identify and describe the ways in which a US company can participate in international commerce. 5. The price of a currency forward contract is determined by the relationship between interest rates of the two countries in question and the time period covered by the contract. Is this statement exactly true, partly true or false?
What are the profit maximizing levels of price and output for the two freight categories? Solution: - Computation of profit maximizing levels of price and output for the two freight categories Marginal Cost for Market 1(Retail outlets) = MC1=d (TC)/dQ1=4 TR1=100Q1-2Q1^2 Marginal Revenue for Market 1=MR1=d (TR1)/dQ1=60-4Q1 For Profit
Explain how it works. Answer: A method of estimating the price elasticity of demand by observing the change in total revenue that results from a change in the price, when all other influences
To assess the reasonableness of large changes in these three accruals, we need to gain some additional insight into changes in the commodity prices for corn and soybeans. o Go to http://www.fao.org/es/ESC/en/index.html
Tutorial Week-4 Discussion Questions 1. What is the concept of market similarity and how does it apply to companies that target foreign markets? An e-marketing plan guides the marketer through the process of identifying and analyzing potential markets. Market differences and market similarities must be measured and compared to determine strengths and weaknesses between foreign markets and home market for initial market entry. Market similarity refers to ways in which two markets exhibit similar characteristics.