Respuestas
working group 6
- Grado
- Institución
- Book
assignments and answers working group 6 international economics
[Mostrar más]Vista previa 2 fuera de 8 páginas
Vista previa 2 fuera de 8 páginas
Añadir al carrito
Añadir al carrito
Libro relacionado
Título del libro:
Autor(es):
- Edición:
- ISBN:
- Edición:
Vendedor
Seguir
LieNi
Comentarios recibidos
Vista previa del contenido
Working group 6 17-10-2019Question 1 (chapter 6, problem 5b, d, e)
b. DR goes up, DA goes down the demand curve will shift to the left. It hurts the Netherlands
Relatively less demand for agricultural products. Lower relative price and lower relative quantity of
agricultural products.
d. supply will decrease of SR, SA goes up the supply curve will shift to the right. It hurts the
Netherlands
Relatively more supply of agricultural products. The relative price will drop. Demand will change as a
reaction on this change. It is just the price that changes, there is a change over de RD curve.
e. with an import tariff, PA/PR goes down because PR goes up. If the price of raw materials is higher,
the supply will increase. SR goes up, SA will go down. DR goes down because of the higher price. This
import tariff is good, because your terms of trade will increase: a higher equilibrium.
Relatively less demand for raw materials, thus more demand for agricultural products. Given the rise
in the price of the agricultural product, the exporters of the agricultural products are better of after
the price increase.
, Question 2 (chapter 6)
From an economic point of view, India and China are somewhat similar. Both are huge, low-wage
countries, probably with similar patterns of comparative advantage, which until recently were
relatively closed to international trade. China was the first to open up. Now that India is also opening
up to world trade, how would you expect this to affect the welfare of China? Of the United States?
(Hint: Think of adding a new economy identical to that of China to the world economy.)
Answer:
Because there is more supply on the market, China is not happy with India opening up to world
trade. The US is happy with this because they can import cheaper because of larger supply in the
world market.
Because we can see the supply curve of China and India as the same, the world supply curve would
shift even more to the supply curve of China + India.
Terms of trade for USA will increase.
E and I can also be good 1 and good 2 respectively.
If the world relative price of good 1 actually increase, they will specialize in producing good 1. The
steeper the line (the red line is the steepest), the more specialization in good 1.
Los beneficios de comprar resúmenes en Stuvia estan en línea:
Garantiza la calidad de los comentarios
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Compra fácil y rápido
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Enfócate en lo más importante
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable. Así llegas a la conclusión rapidamente!
Preguntas frecuentes
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.
100% de satisfacción garantizada: ¿Cómo funciona?
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LieNi. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for $4.09. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
45,681 summaries were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 15 years now
Vistos recientemente
