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The Economic Problem: Scarcity and Choice
The Economic Problem: Scarcity and Choice

Input substitutability, trade costs and the product cycle ISBN : 2-85418-945-0
Input substitutability, trade costs and the product cycle ISBN : 2-85418-945-0

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The Economic Problem: Scarcity and Choice
The Economic Problem: Scarcity and Choice

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... By specialising in goods and services in which it has an absolute advantage. This means it can produce services such as…..with fewer resources and at a lower cost. It can then sell these overseas leading to more exports and higher levels of GDP as a result. It can then buy other goods from other cou ...
factor endowment
factor endowment

... • The capital/labor ratio was $14,000: each person employed was working with $14,000 worth of capital. • It was impossible for Leontief to get information on the amount of labor and capital used to produce imports. • He used data on U.S. technology to estimate amounts of labor and capital used in im ...
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Global Value Chains in the 21st Century
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... Although the role of global manufacturing is now well recognized, we still lack appropriate data to measure it and fully understand all implications. Traditional measures of trade statistics (gross recording) may overstate or misinterpret the actual domestic content of trade flows, and be misleading ...
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... [1997]), or exogenous shocks on productivity or preference that are serially correlated (Cooley [1995]). We show that without these assumptions business cycles may occur in a neoclassical growth model, which is fairly standard except for the existence of two different kinds of capital in the producti ...
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The Production Possibility Model, Trade, and Globalization

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Comparative Advantage and Trade Barriers

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Topic 3: The Standard Theory of Trade. Outline: 1. Main ideas

... To understand the nature of adjustment and the resulting gains from trade, it is best to break this into two steps. • First suppose that without changing production, the community moves to an optimal consumption point, its CIC will be tangent to the IBC passing through the old production point. Ther ...
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Heckscher–Ohlin model

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