This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: According to the classical theory of international trade A) only countries with low wages will ... (Read 87 times)

jayhills49

  • Hero Member
  • *****
  • Posts: 559
on: Jun 30, 2018
According to the classical theory of international trade
 
  A) only countries with low wages will export.
  B) only countries with high wages will import.
  C) countries with high wages will have higher relative prices of all goods.
  D) All the above are false.

Question 2

If a nation is more productive than a trading partner, can it still gain from trade with that partner? Use the concepts of absolute and comparative advantage to explain.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

annierak

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

The gains from trade do not rely on overall productivity (absolute advantage) but on differences in relative prices (comparative advantage). In producing a good or service, as long as a trading partner gives up fewer units of an alternate product, we can gain from trade with them.


jayhills49

  • Member
  • Posts: 559
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

Liamb2179

  • Member
  • Posts: 365
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Polar bears feed upon a number of marine mammals. They are currently at the centre of international Polar bears feed upon a number of marine mammals. They are currently at the centre of international
Descartes’ Theory Descartes’ Theory
This modified model of Easton’s systems theory puts government decision makers as the source of pol This modified model of Easton’s systems theory puts government decision makers as the source of pol
International Normalized Ratio Guidelines for Dental Treatment International Normalized Ratio Guidelines for Dental Treatment
The developed countries must reduce the level of greenhouse gas emissions The developed countries must reduce the level of greenhouse gas emissions
The four identity statuses proposed by Marcia, based on Erikson's theory The four identity statuses proposed by Marcia, based on Erikson's theory
Video: Dendrite Animation

For a complete list of videos, visit our video library