ECS3702 Assignment 2 Full Solutions Semester 2 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)...........
Question 1A Use the hypothetical information in the table below to answer the questions th...
ECS3702
ASSIGNMENT 2 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 6 SEPTEMBER 2024
, ECS3702
Assignment 2 Semester 2 2024
Unique Number:
Due Date: 6 September 2024
International Trade
QUESTION 1A
(i) Identify the product of absolute advantage and disadvantage for both Unos
and Tres. Explain your answer. [4 marks]
Answer:
Absolute advantage refers to the ability of a country to produce more of a good with the
same resources compared to another country. In the case of Unos and Tres:
Unos has an absolute advantage in producing cellphones because they can
produce 18 tons of cellphones per hour, compared to Tres, which can only
produce 6 tons per hour.
Tres has an absolute advantage in producing candles, as they can produce 8
tons of candles per hour, while Unos can only produce 6 tons per hour.
So, Unos has the absolute advantage in cellphones, and Tres has the absolute
advantage in candles.
(ii) From your answer in (i) above, explain whether trade is possible and explain
the pattern of trade according to the theory of absolute advantage. [4 marks]
Answer:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LIBRARYpro. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,89. You're not tied to anything after your purchase.