Exercise 5

1. Explain the Herkscher Ohlin Model briefly.

2. With the help of a diagram, explain Stolper Samuelson Theorem.

3. With the help of diagram, explain Rybzynski theorem.

4. What is the prediction of Herkscher Ohlin Theorem.

5. Is the prediction by Herkscher Ohlin Model supported by any empirical studies? Explain.

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Exercise 6

1. Explain briefly, the Standard Trade Model.

2. With the help of a diagram, explain the impact of import biased growth on the welfare of a country?

3.With the help of a diagram, explain the impact of export biased growth on the welfare of a country?

4. With the help of a diagram, explain the impact of export subsidy on terms of trade and welfare of a country? Please provide example to explain your answer.

5. With the help of a diagram, explain the impact of import tariff on terms of trade and welfare of a country? Please provide example to explain your answer.