PART A. ANSWER ALL QUESTIONS. 1. (a) What is meant by labor-intensive commodity, Capital- labor ratio...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
PART A. ANSWER ALL QUESTIONS. 1. (a) What is meant by labor-intensive commodity, Capital- labor ratio and labor abundant nation? (3 marks) (b) What is the reason for increasing opportunity costs? (2 marks) (c) State the Heckscher- Ohlin theory for the case of two nations and two (2 marks) (d) What effect do the various types of factor growth have on the growing nation's production frontier? (illustrate using diagrams) (3 marks) (e) Which is a more restrictive barrier to trade, an import quota or an equivalent import tariff (2 marks) (f) What are the dynamic gains to the nations forming a customs union? (3 marks) PART B. ANSWER ANY THREE 2. Consider table one below Table 1 ZAMBI ZIMBABW A E Wheat (bushels/labor-hour) 6 1 Cloth (yards/ labor-hour) 1 3 (a) Indicate in what commodity Zambia and Zimbabwe have an absolute advantage. (2 marks) (b) How much would each of the two nations gain if 6W were exchanged for 3C? (4 marks) (c) How much would each of the two nations gain if 6W were exchanged for 6C? (4 marks) (d) What quantities of C for 6W represent the limits within which mutually advantageous trade between Zambia and Zimbabwe can take place? Justify. (5 marks) PART A. ANSWER ALL QUESTIONS. 1. (a) What is meant by labor-intensive commodity, Capital- labor ratio and labor abundant nation? (3 marks) (b) What is the reason for increasing opportunity costs? (2 marks) (c) State the Heckscher- Ohlin theory for the case of two nations and two (2 marks) (d) What effect do the various types of factor growth have on the growing nation's production frontier? (illustrate using diagrams) (3 marks) (e) Which is a more restrictive barrier to trade, an import quota or an equivalent import tariff (2 marks) (f) What are the dynamic gains to the nations forming a customs union? (3 marks) PART B. ANSWER ANY THREE 2. Consider table one below Table 1 ZAMBI ZIMBABW A E Wheat (bushels/labor-hour) 6 1 Cloth (yards/ labor-hour) 1 3 (a) Indicate in what commodity Zambia and Zimbabwe have an absolute advantage. (2 marks) (b) How much would each of the two nations gain if 6W were exchanged for 3C? (4 marks) (c) How much would each of the two nations gain if 6W were exchanged for 6C? (4 marks) (d) What quantities of C for 6W represent the limits within which mutually advantageous trade between Zambia and Zimbabwe can take place? Justify. (5 marks)
Expert Answer:
Answer rating: 100% (QA)
Labour Intensive Commodity Labour intensive commodities are those in which there is a requirement of ... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these finance questions
-
What effect do the various types of factor growth have on the growing nation's production frontier? What is meant by balanced growth?
-
What is meant by dynamic segmentation?
-
What is meant by equity financing? What is meant by debt financing?
-
Which of the following in not a function of DBA? A. Network Maintenance B. Routine Maintenance C. Schema Definition D. Authorization for data access
-
Sevcik Companys auditor received, directly from the banks, confirmations and cutoff statements with related checks and deposit tickets for Sevciks three general- purpose bank accounts. The auditor...
-
What grooming and health needs do rabbits require?
-
A dishwashing machine weighing \(75 \mathrm{~kg}\) operates at \(300 \mathrm{rpm}\). Find the minimum static deflection of an isolator that provides 60 percent isolation. Assume that the damping in...
-
At the beginning of 2012, Mazzaro Company acquired equipment costing $120,000. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $12,000 at that time....
-
Six Dimensions of Culture: Geert Hostede Between 1967 and 1973, Dutch sociologist Geert Hofstede collected 116,000 questionnaires about business practices and attitudes from IBM employees in over 50...
-
A manufacturing company has shared the following results for their latest year of operations. Inventory Beginning inventory: Number of units produced: Number of units sold: Number of units in ending...
-
Select ALL of the TRUE statements regarding microscopy (Mark all that apply) a When cleaning a microscope lens you should use only lens paper in order to avoid scratching the lens b A monocular...
-
Consider an interest-only closed Canadian mortgage. It is offered over 15 years; has monthly payments; the contract mortgage rate is 3%; the mortgage amount is $800,000; the roll-over period is 3...
-
A company issues a ten-year risk-free bond of $100M to pay a one-time dividend. The company is committed never to borrow again in the future. Assume the risk free rate is 3% and the corporate tax...
-
Assume 30.5 cm are in 1 foot and 2.5 cm are in 1 inch calculate how tall in centimeters is someone if they are 5 feet and 9 inches tall round your answer to 0 cm places?
-
How can households, who need to invest their excess funds, reduce their risk?
-
How would you find WACC when equity is from retained earnings?
-
1. A cantilevered second floor balcony shown in the figure below runs the length of the building and supports a 6 inch lightweight concrete deck weighing 125 lb/ft plus a quarry tile finish floor...
-
The production budget of Artest Company calls for 80,000 units to be produced. If it takes 30 minutes to make one unit and the direct labor rate is $16 per hour, what is the total budgeted direct...
-
(a) A concession company, WaterAway, has completed the construction of a wastewater plant. The plant will be transferred to the public sector unconditionally after 25 years. The public sector (the...
-
(a) Discuss why IAS 40 Investment Property was produced. (b) Universal Entrepreneurs plc has the following items on its PPE list: (i) 1,000,000 the right to extract sandstone from a particular...
-
In your capacity as chief assistant to the financial controller, your managing director has asked you to explain to him the differences between tax planning, tax avoidance and tax evasion. He has...
-
A hydraulic lift in a service station has a \(32.50-\mathrm{cm}\)-diameter ram that slides in a \(32.52-\mathrm{cm}\)-diameter cylinder. The annular space is filled with SAE 10 oil at \(20^{\circ}...
-
A 10-kg block slides down a smooth inclined surface as shown in Fig. P1.80. Determine the terminal velocity of the block if the \(0.1-\mathrm{mm}\) gap between the block and the surface contains SAE...
-
A layer of water flows down an inclined fixed surface with the velocity profile shown in Fig. P1.81. Determine the magnitude and direction of the shearing stress that the water exerts on the fixed...
Study smarter with the SolutionInn App