5 Answered Questions for the topic International Economics

12/08/20

International Economics - Biased Growth
We're under the standard trade model, we have two goods (X and Y), and two countries that engage in free trade. Each country exports the goods in which it has Comparative Advantage and imports the... more
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International Economics Business Macroeconomics Theory

05/24/19

Consequences of a positive uncovered interest rate parity (UIP) spread for an emerging market economy?
Empirically we observe that the uncovered interest rate parity (UIP) does not hold; in fact the exchange rate adjusted return on an emerging market bond is higher than the return on US bonds; I... more
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International Economics Macroeconomics Microeconomics

05/11/19

What is a Pareto Optimal Allocation and How do we use an Edgeworth box to Show it?
How can we use an edgeworth box to see if an allocation is Pareto Optimal? What doe Pareto optimal mean?
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International Economics Macroeconomics Microeconomics

05/11/19

The Gains from forming a Free Trade Area or Customs Union Part 1
Suppose Two countries have identical demands for a product. Call it textiles. One is much better at producing Textiles. Suppose Demand is give as P = 40- (1/25) P The Supply Curve for... more
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International Economics Macroeconomics Microeconomics

05/09/19

Full employment and Opportunity cost
If we are in a two country world and both countries are at full employment then they are on their respective production possibility frontier. Does that mean we are on the World Production... more
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