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- What is First Mover Advantage in international political economy?In what kind of industries does a localization strategy make sense? Why? When does a global standardization strategy make the most sense? Why?Explain to the minister the criteria that is considered by the East African partner states to determine the origin of the goods
- Peter Petri, in his study of the Korean experience concludes that Korea has "an unusually protection-prone export bundle." To what extent, within the context of the case study, does his assessment sum up South Korean Industrial policy mix to this day?The Stolper-Samuelson theorem postulates - that the imposition of import tariff will result in : (a) an increase in the real returns to the scarce factors. (b) a decrease in the real returns to the scares factors (c) an increase in the real returns to the abundant factors (d) an increase in the real returns to the scarce and abundant factorAssess all the statements below and judge which of them is true and which is false.Provide a short justification for your assessment.a) One reason that a large share of the trade between high-income industrial economies is intraindustry trade is because higher incomes permit them to spend more money abroad.b) Economies of scale at a firm level imply the benefit of falling average costs in the long-runproduction.c) Simultaneous exports and imports of sub-compact cars of different brand names by a countryis a good example of intra-industry trade.d) External economies of scale occurring in a country or region imply that firms abroad canbenefit from more intensive trade relations.e) If Germany imports copy machines from the rest of the world for a total value of €100 millionand at the same time exports copy machines to the rest of the world for a total value of €500million, the index of intra-industry trade in this case is equal to 0.6.
- Provide a critical assessment of traditional and modern theories of international trade in promoting internationaltradeIn situations where trade is based on product differentiation: The basis for exporting is the domestic production of unique models or varieties of a product demanded by consumers in foreign markets. The basis for importing is to esnurea balance of trade. The basis for importing is the superior products produced by foreign firms. All of the above.Consider a two country, two goods, one factor (labor) model of international trade. Suppose home country require 1 units of labor to produce a unit of cloth and 1 unit of labor to produce a unit of wine (regardless of output levels). Foreign country requires 2 unit of labor to produce 1 unit of cloth and 1.5 units of labor to produce 1 unit of wine (regardless of output levels). (a) Which country has the comparative advantage in producing wine? Justify your answer. (b) Which country has the absolute advantage in producing wine? (c) Which country will have higher autarky price of wine in terms of cloth? (d) Suppose after trade, the international relative price settles at a level strictly between the autarky relative prices of the two countries. At the trade equilibrium, show which country will produce wine and which country will produce cloth.
- Consider a two country, two goods, one factor (labor) model of international trade. Suppose home country require 1 units of labor to produce a unit of cloth and 1 unit of labor to produce a unit of wine (regardless of output levels). Foreign country requires 2 unit of labor to produce 1 unit of cloth and 1.5 units of labor to produce 1 unit of wine (regardless of output levels). (a) Which country has the comparative advantage in producing wine? Justify your answer. (b) Which country has the absolute advantage in producing wine? (c) Which country will have higher autarky price of wine in terms of cloth?what are the advantages and disadvantages of Rice Tariffication Law to the rice farmers.International trade harms the owners of relatively scarce factors of production and benefit the owners of relatively abundant factors of production in a country. This is because: a) Prices of relatively scarce factors are relatively expensive in a country compared with prices of elsewhere when there is no trade. b) Prices of relatively scarce factors are relatively inexpensive compared with prices of relatively abundant factors. c) Factors that are relatively abundant are more productive and get paid more. d) Factors that are relatively scarce are more productive and get paid more.