Question: Hello, could someone please help with these 2 questions? 1) While diamonds are mined all over the world, including in Canada, the diamond trade is
Hello, could someone please help with these 2 questions?
1) While diamonds are mined all over the world, including in Canada, the diamond trade is centered on Antwerp Belgium in an area known as the Diamond Quarter, or the Square Mile. Diamonds are cut and polished in lower wage countries such as India (which accounts for about 90% of all diamond cutting and polishing) but they are traded in Antwerp. There are almost 4,000 dealers, brokers and financial intuitions serving this industry, all located in an area of only several blocks. Antwerp has been the centre of the diamond industry for several centuries since Lodewyk van Berken, a Flemish jeweler invented a device for polishing diamonds around the year 1450. How does the Heckscher-Ohlin theory help to explain this scenario?
2) As a fairly new Canadian manufacturer of medium and high-end barbeques located in Nova Scotia, you have been under severe price pressure from a Chinese low cost manufacturer. In fact the Chinese manufacturer has been successfully convincing various large retail organizations to order low-end barbeque lines that are specially designed and branded with the retail organization's name. Your company has therefore hired a lobbyist to present your case to the federal government. What is the simplest trade policy that you can lobby for? Explain how this would be applied in this scenario.
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