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The following table shows hypothetical export price indexes and import price indexes (2000 = 100) for Japan, Canada, and Ireland. Compute the commodity terms of

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The following table shows hypothetical export price indexes and import price indexes (2000 = 100) for Japan, Canada, and Ireland. Compute the commodity terms of trade for each country for the period 20002016. Export Price Index Import Price Index Country 2000 2016 2000 2016 Japan 100 150 100 140 Canada 100 175 100 175 Ireland 100 167 100 190 Which of the following accurately state how a country's terms of trade improved, worsened, or showed no change? Check all that apply. _ Japan's commodity terms of trade improved to 107. _ Ireland's commodity terms of trade worsened to 88. Canada's commodity terms of trade improved to 107. Ireland's commodity terms of trade remained constant at 100. 9. The logic of service outsourcing - The Ricardian model It is sometimes argued in editorials or TV commentaries that the modern wave of outsourcing, especially outsourcing of services to Pakistan, dees the logic of the Ricardian model. Let's examine if this is actually the case. The following table presents information on labor productivity in computer component production and call center services in the United States and Pakistan. Assume that the United States has an absolute advantage in both. To complete the following table, choose the number of calls that would be most plausible and consistent with the reality of outsourcing services to Pakistan, and indicate the good in which each country has a comparative advantage. Production per Employee Computer Components Call Center Services Country (Units per hour) (Phone calls per hour) Comparative Advantage Pa kistan 4 v v The United States 24 12 v Does the observed pattern of outsourcing from the United States to Pakistan, where Pakistan exports V , defy the logic of the Ricardian model? 0 Yes 0 Mn

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