34.Amount of Beef or Computers Produced byOne

34.Amount of Beef or Computers Produced byOne

34.Amount of Beef or Computers Produced byOne Worker in a DayCanada JapanBeef 8 5Computers 3 42. Which country has the absolute advantage in beefproduction?3. Which country has the absolute advantage in computerproduction?4. Which country has the comparative advantage inbeef production?5. Which country has the comparative advantage incomputer production?6. What are the limits of the terms of trade? Specifically,when is Canada willing to trade with Japan,and when is Japan willing to trade with Canada?35. 3. Tariffs and quotas both raise the price of foreigngoods to domestic consumers. What is the differencebetween the effects of a tariff and the effects ofa quota on the following?a. The domestic governmentb. Foreign producersc. Domestic producers9. How would the effects of international trade on thedomestic orange market change if the world priceof oranges were above the domestic equilibriumprice? Draw a graph to help explain your answer.36.13. You are a U.S. importer who buys goods frommany different countries. How many U.S. dollarsdo you need to settle each of the followinginvoices?a. 1,000,000 Australian dollars for wool blankets(exchange rate: A$1 . $.769)b. 500,000 British pounds for dishes (exchangerate: ?1 . $1.5855)c. 100,000 Indian rupees for baskets (exchangerate: Rs1 . $.0602)d. 350 million Japanese yen for stereo components(exchange rate: 1 . $.0069)e. 825,000 euros for German wine (exchange rate:E 1 . $1.05)14. What is the dollar value of the invoices in exercise13 if the dollar:a. depreciates 10 percent against the Australiandollarb. appreciates 10 percent against the British poundc. depreciates 10 percent against the Indian rupeed. appreciates 20 percent against the Japanese yene. depreciates 100 percent against the euro15. Explain purchasing power parity and why it doesnot hold perfectly in the real world


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