Suppose country A and B have a labour force of 1 and produce hops and barley using only labour. Country A's unit labour cost are 0.5 for hops and 0.5 for barley, country B's 0.2 for hops and 0.4 for barley. Suppose that both are needed to brew beer in equal quantitiy, so that both national and international demand has the property that equal amounts of barley and hops are demanded. How much more beer (as a percentage) will be brewed under international trade than in autarky?   Please enter the percentage rounded to a whole number (up or down is both acceptable) without the percentage sign.

Q: Suppose that Country A and Country B have unit labour requirements for producing one tonne of steel…

A: Comparative advantage: Let's say there are two countries A and B, each producing two goods X and Y…

Q: Suppose that Country A is capital-endowed. Using the following production functions, which product…

A: The capital and labor are the factors of production and thus the comparative advantage would be…

Q: Q3. Suppose the technologies available to countries A and B are given by the following table: S 4…

A: (Note: Since there are multiple questions, only part A has been solved).    (A) In a competitive…

Q: The nation of Ectenia has 40 competitive apple orchards, which sell apples at the world price of $2…

A: The labor market explains how equilibrium wage rate and the equilibrium units of labor is determined…

Q: Consider an H-O economy in which there are two countries (US and France), two goods (wine and…

A: One of the most prominent models of international commerce is the Heckscher-Ohlin (H-O; sometimes…

Q: Suppose in a given year, France can produce 100 tons of cheese or 500 oranges. Spain can produce 150…

A: "According to the comparative advantage countries will produce and export those goods which they can…

Q: Q1. Let suppose in the world there is two country, Country X and Country Y. In country X there is…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Suppose the US is relatively well endowed with skilled workers and Mexico is relatively well endowed…

A: International trade refers to the buying and selling of goods across the borders. When the flow of…

Q: Below is the data for the maximum production of the only two products for the countries of Oz and…

A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…

Q: 9. Answer ALL parts of this question. Holland produces cars and beer, using labour and capital, in a…

A: Given information Country Holland Labor unit requirement for car=4 in hours Capital units…

Q: Most firms in the apparel and footwear industries choose to outsource production to countries where…

A: Apparel and footwear industry is labor-intensive and most of their cost includes wages paid to…

Q: Consider two competitive economies that have the same quantities of labor (L = 400) and capital (K =…

A: A firm uses different combinations of factors of production such as labor and capital to produce…

Q: There are two countries Home and Foreign country. Both countries produce Food and Cloth. Food…

A: Given  Food production uses 80 workers and 200 acres  And cloth production uses 40 workers and 40…

Q: Unions in developed nations often oppose imports from low- wage countries and advocate trade…

A: INTRODUCTION  No, this kind of rivalry isn't unequal. The Union and the people it represents are the…

Q: Consider two countries, Spain and Russia and two goods, wine and vodka. Labour is the only factor of…

A: STEP 1 SPAINUnit labour requirement for wine = 2Unit labour requirement for vodka =22 Wages = W…

Q: Autarky is a situation in which a country is economically O developed O dependent on a single firm O…

A: A country is said to be in a state of autarky if it does not engage in international trade, i.e., it…

Q: What is meant by complete specialization? By incomplete specialization? Under the Ricardian model,…

A: Ricardian model states how there would be the two countries that can produce two goods and how there…

Q: A German truck company is considering relocating its production from Germany to either Romania or…

A: When a business produces a product or offers a service, it incurs production expenses, also known as…

Q: Unit labor costs in Germany approach $30 per hour, whereas in Britain unit labor costs are only $20…

A: Unit labor: It refers to the cost of a country closely related to the level of labor productivity.…

Q: With free trade, why is wage (income) gap between American skilled and unskilled workers widened?…

A: Part A → As country A is using skilled laborers for the production of expensive products at the same…

Q: Q1. Let suppose in the world there is two country, Country X and Country Y. In country X there is…

A: Comparative advantage means a country export the goods in which it is specialized and a country…

Q: Britain and France are countries in a Ricardian trade model. Each country produces wine and bread.…

A: International trade refers to the exchange of goods and services between two or more nations for…

Q: 1. Hours of Labor Required to produce Cheese and Wine USA FRANCE Cheese 20 30 Wine 20 d. Wage rate…

A: Wage rate in USA is more than in France. USA is having comparative advantage in both cheese and…

Q: If country A produces 6,000 units of goods and services using 600 hours of labor, and country B…

A: Given the information for production and units of labor used. We can find the marginal productivity…

Q: In the USA the unit labor requirement to produce TV and food are 40 and 1 respectively. In Japan the…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: One reason that a large share of the trade between high-income industrial economies is…

A: Answer: Intra-industry trade happens due to the availability of economies of scale. Each industry…

Q: Q:1 A. Explain the reason ( s ) why the equalization of relative factor prices is a result of trade…

A: Answer- A Answer- Need to find- Explain the reason ( s ) why the equalization of relative factor…

Q: Answer ALL parts of this question. Britain and France are countries in a Ricardian trade model. Each…

A: Given information Unit labor requirement for the wine and bread production in Britain and France.…

Q: 2. Suriname and Paraguay consume two goods, coffee and machines, and labour is the only input into…

A: Answer-

Q: The United States and Canada have two factors of production, capital and labor, with which they…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: . What is the total gain in apparel and chemical output that would result from such specialization?…

A: Opportunity costs address the potential advantages that an individual, investor, or business passes…

Q: A and B are two similar countries producing pendrives, with the only difference being that A has…

A: Here the, two-final-good is the pen drives from the countries A and B and a growth model is…

Q: The logic of service outsourcing - The Ricardian model It is sometimes argued in editorials or TV…

A: An economy is said to be an open economy if it can trade freely with other countries. Trade between…

Q: Suppose the US is relatively well endowed with skilled workers and Mexico is relatively well endowed…

A: Suppose the US is relatively well endowed with skilled workers and Mexico is relatively well endowed…

Q: Assume that the comparative-cost ratios of two products-baby formula and tuna fish-are as follows in…

A: Canswicki requires to renounce 5 cans of tuna fish for 1 container of baby formula, though tuna fish…

Q: What is meant by complete specialization and incomplete specialization? Why do both nations gain…

A: The trade involves the exchange of the goods and services. The trade results in the export and the…

Q: Assume a Heckscher-Ohlin model of trade. Australia (AUS) and New Zealand (NZL) produce paper (P) and…

A: According to H-O model of trade a country will export the commodity whose production will require…

Q: Home unit labor requirements for the production of goods A, B, C, D and E are 8, 4, 10, 4, 6…

A: we will find the solution for all the options as follows-

Q: 2. Suriname and Paraguay consume two goods, coffee and machines, and labour is the only input into…

A: Amount of production of both the goods in both countries can be stated as : Number of units produced…

Q: We have export and import data of a country for the last two years.  In addition, let's assume that…

A: According to the comparative advantage, the country produces only those good which have lower…

Q: Please explain why the answer is false. Specializing in its comparative advantage and trading with…

A: Comparative Advantage: According to the law of comparative advantage, if a nation has an absolute…

Q: Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units…

A: Let the capital and labor endowment in country A be denoted by 'Ka' and 'La' respectively.…