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1. Brazil and Germany are trading computers and cell phones. Germany's opportunity cost is 1 computer = 2 cell phones, and the opportunity cost of
1. Brazil and Germany are trading computers and cell phones. Germany's opportunity cost is 1 computer = 2 cell phones, and the opportunity cost of 1 cell phone = 0.5 computer. Brazil's opportunity cost of 1 computer = 1 cell phone, and the opportunity cost of 1 cell phone = 1 computer. Using an example, explain the comparative advantage for both countries. (4 points value) 2. A country produces five different products: clothes, wine, toys, computers, and cars. The country has an exceptional comparative advantage producing cars and computers. If the country decides to specialize producing cars and computers, using examples, explain how it can affect the other three sectors (clothes, wine, toys) (5 points value) 3. You have been hired to work in a medium-size company located in Toronto. Three year ago, the company introduced into the Canadian market a chilly-based food dressing which has been sold successfully since then. This one-flavor product is sold in the most popular grocery chains in Toronto (Loblaws, Metro, Walmart and Longo's) in three different sizes 14, 20 and 32 oz. The retail price is $ 2.69, $ 3.69, and $ 4.59 respectively, The company wants to introduce the product in South American countries, specifically in those considered the most attractive markets (Colombia, Peru, Chile and Argentina), The company's executives are asking your team to outline an "International Market Research Plan" and a preparatory meeting with the company executives has been already scheduled. Using examples, explain what specific information you should request from the executive team to start working on the plan, 1. Brazil and Germany are trading computers and cell phones. Germany's opportunity cost is 1 computer = 2 cell phones, and the opportunity cost of 1 cell phone = 0.5 computer. Brazil's opportunity cost of 1 computer = 1 cell phone, and the opportunity cost of 1 cell phone = 1 computer. Using an example, explain the comparative advantage for both countries. (4 points value) 2. A country produces five different products: clothes, wine, toys, computers, and cars. The country has an exceptional comparative advantage producing cars and computers. if the country decides to specialize producing cars and computers, using examples, explain how it can affect the other three sectors (clothes, wine, toys) (5 points value)
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