Question
Transylvania specializes in cocoa production, and exported cocoa for USD500 million in 2017 and USD560 million in 2018. The value of total traded cocoa in
Transylvania specializes in cocoa production, and exported cocoa for USD500 million in 2017 and USD560 million in 2018. The value of total traded cocoa in the world was equal to USD25 billion in 2017 and USD27 billion in 2018. Meanwhile, total value of world exports in 2017 and 2018 were USD15.5 trillion and USD16 trillion respectively. In 2018, Transylvania's total exports increased by 10% compared to the previous year and hit USD17.05 billion. By using the provided information.
a) Calculate the Revealed Comparative Advantage (Balassa) index for Transylvania for 2017 and 2018.
b) Discuss whether the position of Transylvania has strengthened or weakened in the cocoa market from 2017 to 2018.
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