Questions from Globalization

Q: For each of the following, specify whether the foreign direct investment

For each of the following, specify whether the foreign direct investment is horizontal or vertical; in addition, describe whether that investment represents an FDI inflow or outflow from the countries...

Q: If there are internal economies of scale, why would it ever

If there are internal economies of scale, why would it ever make sense for a firm to produce the same good in more than one production facility?

Q: Most firms in the apparel and footwear industries choose to outsource production

Most firms in the apparel and footwear industries choose to outsource production to countries where labor is abundant (primarily, Southeast Asia and the Caribbean)—but those firms do not integrate wit...

Q: Home’s demand curve for wheat is D = 100 - 20P

Home’s demand curve for wheat is D = 100 - 20P. Its supply curve is S = 20 + 20P. Derive and graph Home’s import demand schedule. What would the price of wheat be in the absence of trade?

Q: If tariffs, quotas, and subsidies each cause net welfare losses

If tariffs, quotas, and subsidies each cause net welfare losses, why are they so common, especially in agriculture, among the industrialized countries such as the United States and the members of the...

Q: It has been all downhill for the West since China entered the

It has been all downhill for the West since China entered the world market; we just can’t compete with hundreds of millions of people willing to work for almost nothing.” Discuss.

Q: Suppose workers involved in manufacturing are paid less than all other workers

Suppose workers involved in manufacturing are paid less than all other workers in the economy. What would be the effect on the real income distribution within the economy if there were a substantial t...

Q: Now add Foreign, which has a demand curve D

Now add Foreign, which has a demand curve D* = 80 - 20P and a supply curve S* = 40 + 20P. a. Derive and graph Foreign’s export supply curve and find the price of wheat that would prevail in Foreign...

Q: Home imposes a specific tariff of 0.5 on wheat imports

Home imposes a specific tariff of 0.5 on wheat imports. a. Determine and graph the effects of the tariff on the following: (1) the price of wheat in each country; (2) the quantity of wheat supplied an...

Q: Suppose Foreign had been a much larger country, with domestic demand

Suppose Foreign had been a much larger country, with domestic demand D* = 800 - 200P, S* = 400 + 200P. (Notice that this implies the Foreign price of wheat in the absence of trade would have been th...