- 9 Surplus Plus Producer Surplus From Lower Tariffs Or Otherwise Liberalizing Trade There Is Three Gain Of Trade 1 Lov 1 (109.94 KiB) Viewed 37 times
=9 surplus plus producer surplus from lower tariffs or otherwise liberalizing trade. There is three gain of trade:1) love-of-variety gains associated with intra-industry trade; 2) allocative efficiency gains associated with shifting labor and capital out of small, less-productive firms and into large, more-productive firms; and 3) productive efficiency gains associated with trade-induced innovation. 11) Some international companies interested to invest in UAE Free Zone's chemical projects. What will be the answers connected with this case? a) Identify how Cost-benefit analysis of international trade for "Special Economic Zones "helpful for UAE? b) What are the main 'market entry according to international business market entry mode? C) Chemical projects included in which type of market entry? d) As per Ricardian Model how could UAE benefit from trade by establishing Free Zones? e) Which country or countries gain from the trade in free zones? 12. In view of "Ricardian Model and Specific Factor Model of intemational business to answer the following questions. Production per unit of labor Jordan 500 200 Egypt 30 Potato Meat 30 2 Total 600 60 a) Discuss about absolute advantage in the production of Potato or meat? Explain your answer. b) What is the opportunity cost of Potato in each country? c) What is the opportunity cost of meat in each country? d) What will happen if wages required in production of Meat in Jordan increases? e) As per Specific Factor Model which situation specifies adding one worker to the production process, capital remain the same, less output will be produced?