evaluation of announced free-trade direction

Suppose that a country announces that it is moving toward free trade by reducing its tariffs on intermediate inputs while maintaining its tariffs on final goods. What is your evaluation of announced free-trade direction of the country's policy?

A dollar appreciation against the swiss franc is no guarantee that the dollar will go further than it previously did acquiring Swiss goods

A dollar appreciation against the swiss franc is no guarantee that the dollar will go further than it previously did acquiring Swiss goods. Do you agree? Explain

Suppose that the supply sides of France, Germany and Italy are each described by a simple Ricardian model with two goods, A and B.

Please see attached file for full problem description. Suppose that the supply sides of France, Germany and Italy are each described by a simple Ricardian model with two goods, A and B. The technology is as follows: Labor Needed A B Labor France 4 2 200 Germany 1 1 100 Italy 2 4 200 i. Who has a comparative advantage in what? ii. Draw the world PPF and describe the efficient patterns of specialization. iii. Describe the free-trade equilibrium if everyone always consumes equal amounts of A and of B. Who gains and loses, who produces and trades what, what are the relative prices? 2. Suppose that the supply sides of France and Italy are each descr... click for more

Comparative Advantage

Suppose France is trading 600 units of wine to Germany for 300 machines at a relative price of 2 wine per machine. Merchants sign contracts three months before payments are made, and all merchants wish to hedge exchange risk. Describe completely all forward exchange transactions that take place when the contracts are made. Describe what actually takes place three months later.

Suppose that the country experiences an increase in its capital stock. How would the edgeworth box change? How would the production possibilities frontier change as a result?

Suppose that the country experiences an increase in its capital stock. How would the edgeworth box change? How would the production possibilities frontier change as a result? Could the could coutry now obligate more of both goods than before the increase in capital stock or more of only the capital intensive good. Explain.