\n<\/p>\n

<\/p>\n

Q1. Using the following data on factor endowments of countries X and Y, determine the direction of the international trade under the HO theory. (10 points)<\/p>\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n

\n Factor Endowment<\/p>\n<\/td>\n	\n Countries<\/p>\n<\/td>\n<\/tr>\n
\n X<\/p>\n<\/td>\n	\n Y<\/p>\n<\/td>\n<\/tr>\n
\n Labor Force (in million workers)<\/p>\n<\/td>\n	\n 28<\/p>\n<\/td>\n	\n 10<\/p>\n<\/td>\n<\/tr>\n
\n Capital Stock (in thousands of machines)<\/p>\n<\/td>\n	\n 56<\/p>\n<\/td>\n	\n 30<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n Q2. Answer the question(s) below based on the information in the following table under the classical model, where the numbers represent the number of labor hours it will take to produce a unit of the given good.<\/p>\n\n\n\n\n<\/colgroup>\n\n\n\n\n <\/td>\n \n Spain<\/p>\n<\/td>\n <\/p>\n France<\/p>\n<\/td>\n<\/tr>\n <\/p>\n Grapes<\/p>\n<\/td>\n \n 3<\/p>\n<\/td>\n <\/p>\n 9<\/p>\n<\/td>\n<\/tr>\n <\/p>\n Textiles<\/p>\n<\/td>\n \n 1<\/p>\n<\/td>\n <\/p>\n 2<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n (1) What country has comparative advantage in Grapes and in Textiles? How? (5 points)<\/p>\n (2) Draw diagrams to illustrate the pre- <\/em>and post- <\/em>trade equilibria for each of the two countries including the production points, the consumption points, the international price, and the volumes of exports and imports for each. (7 points)<\/p>\n <\/p>\n Q3. France is capital abundant and Italy is labor abundant. Shoes are labor intensive and wheat is capital intensive.<\/p>\n (1) Identify which country has comparative advantage in which good and Why? (5 points)<\/p>\n (2) Draw diagrams to illustrate the pre- <\/em>and post- <\/em>trade equilibria for each of the two countries including the production points, the consumption points, the international price, and the volumes of exports and imports for each. (7 points)<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Q1. Using the following data on factor endowments of countries X and Y, determine the direction of the international trade under the HO theory. (10 points) Factor Endowment Countries X Y Labor Force (in million workers) 28 10 Capital Stock (in thousands of machines) 56 30 Q2. Answer the question(s) below based on the information […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/182225"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=182225"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/182225\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=182225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=182225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=182225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}