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国际商业金融课业代写 LUBS5006M代写 国际金融作业代写

LUBS5006M International Business Finance

国际商业金融课业代写 1. Comparative advantage Exercises 1.1 to 1.5 Illustrate an example of trade induced by comparative advantage under the following assumptions:

1. Comparative advantage 国际商业金融课业代写

Exercises 1.1 to 1.5

Illustrate an example of trade induced by comparative advantage under the following assumptions: assume that China and France each have 1,000 production units. With one unit of production (a mix of land, labour, capital, and technology), China can produce either 10 containers of toys or 7 cases of wine. France can produce either 2 containers of toys or 7 cases of wine. Thus, a production unit in China is five times as efficient compared to France when producing toys, but equally efficient when producing wine. Assume at first that no trade takes place. China allocates 800 production units to building toys and 200 production units to producing wine. France allocates 200 production units to building toys and 800 production units to producing wine.

1.1 Production and Consumption 国际商业金融课业代写

What is the production and consumption of China and France without trade?

1.2 Specialization

Assume complete specialization, where China produces only toys and France produces only wine.

What would be the effect on total production?

1.3 Trade at China’s Domestic Price

China’s domestic price is 10 containers of toys equals 7 cases of wine. Assume China produces 10,000 containers of toys and exports 2,000 to France. Assume France produces 7,000 cases of wine and exports 1,400 cases to China. What happens to total production and consumption?

1.4 Trade at France’s Domestic Price 国际商业金融课业代写

France’s domestic price is 2 containers of toys equals 7 cases of wine. Assume China produces 10,000 containers of toys and exports 400 containers to France. Assume France in turn produces 7,000 cases of wine and exports 1,400 cases to China. What happens to total production and consumption?

1.5 Trade at Negotiated Mid-Price

What happens to total production and consumption? First calculate the mid-price for exchange and then show what happens to total production and consumption.

2. 国际商业金融课业代写

Consider the no trade input and output situation presented in the table below for countries X and Y. Assuming that free trade is allowed, develop a scenario that will benefit the citizens of both countries.

3.

Explain the considerations that might limit the extent to which the theory of comparative advantage is realistic.

国际商业金融课业代写
国际商业金融课业代写

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