Exam 3: Labor Productivity and Comparative Advantage: The Ricardian Model

When compared with China,the growth of clothing exports originating in Bangladesh clearly illustrates the Ricardian model of comparative advantage.Discuss and explain.

In a two product two country world,international trade can lead to increases in

-Given the information in the table above.If these two countries trade these two goods with each other in context of the Ricardian model of comparative advantage,what is the lower limit for the price of cloth?

-Given the information in the table above.What is the opportunity cost of Cloth in terms of Widgets in Foreign?

-Given the information in the table above.If these two countries trade these two goods in the context of the Ricardian model of comparative advantage,then what is the lower limit of the world equilibrium price of widgets?

In a two country and two product Ricardian model,a small country is likely to benefit more than the large country because

If labor productivities were exactly proportional to wage levels internationally,this would

If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of F,then

Many countries in sub-Saharan Africa have very low labor productivities in many sectors,for example in manufacturing and agriculture.They often despair of even trying to attempt to build their industries unless it is done in an autarkic context,behind protectionist walls because they do not believe they can compete with more productive industries abroad.Discuss this issue in the context of the Ricardian model of comparative advantage.

In order to know whether a country has a comparative advantage in the production of one particular product we need information on at least ________ unit labor requirements