Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5. In autarky, country Here produced computers 500,000 computers and 750,000 pairs of shoe each year and country There produces 1,200,000 computers and 600,000 pairs
5. In autarky, country Here produced computers 500,000 computers and 750,000 pairs of shoe each year and country There produces 1,200,000 computers and 600,000 pairs of shoes each year. All the Heckscher-Ohlin assumptions apply All the Heckscher-Ohlin assumptions apply, except common tastes. (10 pts.) a. b. c. What is the notrade relative price for computers to shoes in Here? What is the notrade relative price for computers to shoes in There? Here and There engage in international trade and determine the world price line slope to be 1. Determine the following: i. Does Here import or export computers? ii. Does There import or export shoes? iii. What is the relative quantity of exports to imports from Here's viewpoint? Given the quantities each country consumes once international trade is open, what tells us that tastes must differ between the two countries
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started