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Environmental concerns about fossil fuels are causing consumers in many countries to switch from coal to renewable energy sources. Coal is produced using capital and
Environmental concerns about fossil fuels are causing consumers in many countries to switch from coal to renewable energy sources. Coal is produced using capital and labor. Poland is a major coal producer and exporter. Respond to the following using the Heckscher-Ohlin/standard trade model: a. Illustrating your answer with a graph, show how Poland's terms of trade are affected by the worldwide switch from coal to renewable energy. b. How do the changes to its terms of trade affect Poland's national welfare? Support your answer with a graph that has coal on the horizontal axis and everythingelse on the vertical axis. c. Are all Polish residents equally affected by the changes to its national welfare? If not, what would you need to know in order to gure out who wins and who loses? Why
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