Evaluate. a.) In international trade domestic cost ratios determine the limits o

Question

Evaluate.

a.) In international trade domestic cost ratios determine the limits of mutually beneficial trade, wheras demand considerations show where, within these limits, the actual exchange ratios lie.  

b.) Comparative adcantage is a theoretcial concept.  It can not be used to explain any real world phenomena.

c.) The opening up of trade raises the price of export goods hense trade is inflationary.

d.) The concept of absoulte advantage offers explanations for East Germanys high unemployment rates in the 1990s.  

Explanation / Answer

a.) True

b.) False. // every trade occurs on the basis of comparatice advantage.

c.)By demand supply model it is true but when there is comparative advantage it will help country and there will not be any inflation.

d.)True.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.