Heckscher Ohlin model and production possibilities frontier

There are 2 countries, the U.S. and Mexico, that produce 2 goods, manufacturing and agriculture. Manufacturing output in the U.S. is a function of labor and capital inputs. Agriculture output in the U.S. is a function of labor inputs only. Manufacturing output in Mexico is a function of labor input only. Agriculture output in Mexico is a function of labor and capital. Manufacturing is capital intensive and agriculture is labor intensive. The U.S. is relatively more capital abundant. My problem: What do the production possibilities frontiers for the U.S. and Mexico look like? I am guessing that the U.S. PPF is a straight line as only labor is released as production is shift... click for more

How do I solve this using this formula?

Given: The Spot Exchange Rate (R) between the British Pound and the Japanese Yen is Y190.00/L The Six Month foward rate (F) is Y199.0476/L British six-month government bonds offer an interest rate of 5% Assuming that the global finaincial markets are perfectly efficent, what interest rate should Japanese six-month government bonds be offering? Using this formula: 1+i=(1/R)(1+i*) F=(1+i*)(F/R) (i= domestic int rate; i*=foreign int rate)

The Spot Exchange Rate (R) between the British Pound and the Japanese Yen is Y=190.00/L

Previous Part to this: The Spot Exchange Rate (R) between the British Pound and the Japanese Yen is Y=190.00/L The six month forward rate (F) is Y=199.0476/L British six month government bonds offer an interest rate of five percent Spot Rate (R) is Y184.3/L Forward Rate (F) is Y199.0476 British 6 month government bonds offer an interest rate of 5% (i) Japanese six month government bonds are offered at 9.99% (i*) Formula is: 1+i = (1/R) (1+i*) F= (1+i*) (F/R) Assuming that the global finance markets are perfectly efficent, what interest rate should the Japanese six-month government bonds be offering? To answer this, use the precise formula above. The answer is 9.99% _____... click for more

European economic history

How did the economic policies of developed countries after the second world war differ from their policies after the first world war? the "policies referred to here are those which most directly affect international trade.

transaction risk caused by fluctuations of relative currency values

You are the finance manager of an american multinat'l. Your co. has soldUS$1million of its product to a chinese importer. The rate of exchange on the day of sale is US$1=yuan8 so on that day the 1 million US$ equals 8million chinese yuan. The contract calls for the chinese importer to pay your company yuan 8 million six months from the date of sale. Therefore your company bears the transaction risk of a change in the currency exhange rates between the US$ and the yuan. Assume your co. has no need for chinese yuan and will want US$s no later than the payment date. Assume further that you do not want to carry the transaction risk. Give two methods by which you might protect your company from ... click for more