(g) Explain how is the production structure (i.e. which goods are produced) affected in each country by opening up to trade. Is this consistent with the empirical evidence we observe in reality? How can this model be modified to produce a less stark result?

Standard trade Model When comparing the agricultural sectors of the USA and the UK, we can analyze it within the framework of the standard trade model, also known as the neoclassical trade model. This model assumes perfect competition, constant returns to scale, and comparative advantage based on differences in factor endowments. Here's how the standard model can be applied to the agricultural sectors of the USA and the UK:     a) Land: The USA has vast amounts of arable land, which can be used for agriculture. Its large land endowment can give it a comparative advantage in the production of various agricultural commodities.   b) Labor: The UK's agricultural sector might not have a significant comparative advantage in labor-intensive agriculture due to relatively high labor costs compared to countries with lower wage levels. However, it may focus on niche agricultural products or high-value crops that require specialized labor or have specific geographical advantages.   c) Capital: The…

One of the following phenomena has been inaccurately described. Which one is it? a. Offshore outsourcing is both an example of an contributes to the globalization of business. b.A deep-seated cultural preference for having boy babies no longer affects the cultural landscape of South Asia. c. The negative consequences of the Green Revolution are somewhat mitigated by agroecology. d.The Grameen Bank has offered microcredit loans to many poor people, enabling them to work themselves out of poverty.

For analysing questions about “North-South" trade, i.e. trade between industrialised and less developed countries, are Ricardian models or Specific Factors models preferable? The answer should elaborate on which properties (focus on two) of the two models are likely to be important for the analysis and end with a conclusion, three paragraphs should be enough.