1. Provide 4 factors that negate the Leontief Paradox for Factor endowment Model
2. Explain why intra-industry is an important aspect of studying international trade.
these two answer should be very brief!
3. Give the information below identify which country has absolute advantage and comparative advantage. Which country should produce which products. What are the gains from trade for each country? (hint you will need to find autarky output) To receive credit all work must be shown.
Brazil |
Chile |
Thailand |
Panama |
|
Beef |
100 cows |
70 cows |
25 cows |
50 cows |
Lumber |
1000 board feet |
950 board feet |
500 board feet |
600 board feet |
Tuna |
700 lbs |
200 lbs |
600 lbs |
300 lbs |
Tomatoes |
200 lbs |
50 lbs |
75 lbs |
150 lbs |
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