Can anybody help me answer these 2 questions 1. Suppose Japan, a capital rich na

ID: 1212150 • Letter: C

Question

Can anybody help me answer these 2 questions

1. Suppose Japan, a capital rich nation relative to Mexico, attempts to negotiate a trade agreement promoting trade between Japan and Mexico.

a) Which group in each nation, capital or labor, is likely to resist the agreement?

b) Could the gainers possibly compensate the losers if the agreement were to pass?

2. For which of the following products would you predict the greatest level of intra-industry trade, assuming there are increasing returns to scale?

a) Common sand.

b) Wheat.

c) Children’s toys.

d) Rubber bands.

In japan , Labour group is likely to resist, and in mexico, capital group is likely to resist.

Yes, the gainers will compensate the lossers.

b) Wheat.

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