Suppose Indonesia and China are trading partners. Indonesia initially Export palm oil to and import lubricants from
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Suppose Indonesia and China are trading partners. Indonesia initially Export palm oil to and import lubricants from China. Using standards trade model, explain how an increase in the relative price of palm oil, in relation to lubricants prices, would affect production and consumption of palm oil for Indonesia (assuming price that the taste for both goods in the same in both countries). if the income effect of price change of pam oil is greater than substitution effect, what would happen to palm oil consumption in Indonesia?
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Valuation Measuring and managing the values of companies
ISBN: ?978-0470424704
5th edition
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
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