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Author Question: Given the information in the table above A) neither country has a comparative advantage in cloth. ... (Read 125 times)

segrsyd

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on: Jun 30, 2018
Given the information in the table above
 
  A) neither country has a comparative advantage in cloth.
  B) Home has a comparative advantage in widgets.
  C) Foreign has a comparative advantage in widgets.
  D) Home has a comparative advantage in both cloth and widgets.
  E) neither country has a comparative advantage in widgets.

Question 2

What is pricing to market? Where is it most prevalent?
 
  What will be an ideal response?


Tonny

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

Pricing to market is the practice of adjusting export prices in response to exchange rate changes so as to limit changes in the prices paid by importers. This behavior has been found to be generally increasing and especially prevalent amongst Japanese and German exporters.


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segrsyd

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Reply #2 on: Jun 30, 2018
Thank you


Tonny

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Reply #3 on: Jun 30, 2018
No problemo


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