--%>

Problem on International trade economy

If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii) Not trade at all with people in United States. (iv) Still profit by specializing and exchanging some of its output in which China enjoyed the comparative advantage for goods generated with comparative advantages through Americans.

What is the right answer?

   Related Questions in International Economics

  • Q : What does a deficit in balance of trade

    Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.

  • Q : System characterization of US economy

    The U.S. economy is an instance of a system characterized by: (1) Mixture of different aspects of various economic systems. (2) Strictly decentralized the decision making process. (3) Centralized ownership of resources. (4) Political decisions regarding all allocative

  • Q : International monetary system safeguard

    safeguard against the crisis of confidence in system explain

  • Q : Homework help for manufacturer &

    Question 1 Household Tools Co. is a manufacturer of microwave ovens. The manufacturer wants to increase the shelf life of their products. Past records indicate that the average shelf life of their microwave ovens is 240 days. After a new line of microwave ovens has been d

  • Q : Why Demand for foreign exchange is made

    Demand for foreign exchange is prepared to: (A) Purchase services and goods (B) Send gifts and funding(C) Speculate the value of foreign currencies, (D) Invest and procure financial assets

  • Q : International monetary system safeguard

    safeguard against the crisis of confidence in system explain

  • Q : Problem regarding Comparative advantage

    Assume that El Salvador can generate coffee at lower opportunity costs than Spain, whereas Spain can generate olive oil at lower opportunity costs than El Salvador. The citizens of both countries can potentially profit from international trade since of the efficiency

  • Q : Key challenges to india's economic

    Identify the key challenges to india's economic development. To what extent the second generation reforms will tackle the current challenges of india's development

  • Q : Problem on completely employed economy

    In a completely employed economy, the higher the yield of capital goods, and the bigger its: (1) Present living standards. (2) Present output of consumer goods. (3) Growth of capacity for the future production. (4) Rates of inflation and unemployment.

  • Q : Define foreign exchange rate Foreign

    Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.