Impact of International trade


1. Please, fully evaluate the following saying attributed to Abraham Lincoln: “When we buy manufactured goods abroad, we get the goods and the foreigners get the money.  'When we buy the manufactured goods at home, we get both the goods and the money."

2. Assume tastes and technology are identical in Hong Kong and Japan. Assume Hong Kong is labor abundant and Japan is capital abundant. Assume production of clothing is labor intensive and production of automobiles is capital intensive.
a. Stretch the production possibilities frontiers for Hong Kong and Japan. Explain why you drew them as you did.
b. In autarky, which country has a comparative advantage in production of which good?  Show how you know, or why you don't know.
c. what does the Heckscher-Ohlin theorem predict would happen if trade were opened  between  Hong Kong and Japan?
d. Show and label the autarky and unrestricted trade equilibria, production consumption   points, imports and exports, autarky price ratios, and terms of trade.

3. What is referred as the T.A.A.  program? What is it origin and purpose? How is it currently  evaluated?
4. Are the Ricardian and Heckscher-Ohlin models still relevant to explain the pattern of trade today?

These questions belong to economics and they deal with international trade. Abraham Lincoln’s quote on buying goods from foreign country has been discussed. An example of Hong Kong and Japan in terms of labor and capital exchange has been discussed. Find the detailed answers in the solution.

Total Word Count 1252

Download Full Solution


  • HWA

    this is a very good website

  • HWA

    I have 50 questions for the same test your page is showing only 28

  • HWA

    hi can you please help or guide me to answer my assignments. thanks

  • HWA

    hi can anyone help or guide me to my assignments. thanks

  • HWA

  • HWA

    This solution is perfect ...thanks

  • HWA

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA

    Perfect bank of solution. 

  • HWA

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA

    works fine.