1、4W1W6W3W1C2C3C4C Table 2.5 2 what respect to Table 2.5,indicate in each whether or not trade is possible and the basis for trade 3Suppose that in CaseB in Table 2.5 the U.S. exchanges 4W for 4C with UK（a） how much does the U.S gain?（b） how much does the U.K gain?（c）what is the range for mutually ben
2、eficial trade?（d） how much world each nation gain if they exchanges 4W for 4C instead?4 answer the following questions with reference to problem 5 （a） what is dollar price of wheat and cloth in the UK if the exchange Rate between the pound and the dollar is 1=$2? would the US be able to export wheat
3、 to the UK at this exchange rate? Would UK be able to export cloth to the US at this exchange rate?（b）what if the exchange rate between the dollar and the pound were 1=$4 ?（c） what if the exchange rate were 1=$1（d） what is the range of exchange rate that will allow the US to export wheat to the UK a
4、nd the UK to export cloth to the US ?5 On one set of axes ,sketch a community indifference curve tangent to the fairly flat section of a concave production frontier. On a second set of axes, sketch another（different） community indifference curve tangent to the fairly steep portion of another （differ
5、ent） concave production frontier. 6 Suppose that the terms of trade of a nation improved from 100 to 110 over a given period of time（a） by how much did the teams of trade of its trade partner deteriorate ?（b）in what sense can this be said to be unfavorable to the trade Partner? Does this mean that t
6、he welfare of the trade partner Has definitely declined?7 if you have traveled to poor developing countries, you will have notice that people there consume very different goods and servicesthan US consumer .does this mean that tastes in developing countries are very different from US tastes ?explain
7、?8 find the degree of Intra-industry trade if exports and importsare , respectively ,a） 1000 and 1000b） 1000 and 750c） 1000 and 500d） 1000 and 25e） 1000 and 09 Draw a figure similar to figure 8.1 for nation1 but with the quantity of commodity Y on the horizontal axis and the dollar price of Y on the
8、 vertical axis. Draw Sy for nation 1,identical to Sx for nation 2 in figure 8.1 ,but . Draw Dy for nation 1 crossing the vertical axis at Py=$8 and the horizontal axis at 80Y, finally, assume that Py=$1 under free trade and that nation 1 then imposes a 100 percent ad valorem important tariff on comm
9、odity Y .with regard to your figure , indicate the following for nation 1:（1）The level of consumption ,production, and imports of commodity Y . at the free trade price of Py=$1（2） The level of consumption , production, and imports of commodity Y after nation 1 imposes the 100 percent ad valorem tari
10、ff on commodity Y（3） what are the consumption, production, trade, and revenue effects of the tariff ?10 Calculate the rate of effective protection when t （the nominal tariff on the final commodity） is 40 percent, Ai （The ratio of the cost the imported input to the price of the final commodity in the
11、 absence of tariff ） is 0.5 , and Ti （the nominal tariff on the imported input） is 40 percent11 for the given in problem 4, recalculate g with the following values of Ti;（1） Ti=20 percent（2） Ti=0（3） Ti=80 percent（4） Ti=100percent12 Starting with Dx and Sx and Px=$ 1 with free trade in figuer9.1 ,ana
12、lyze the partial equilibrium effects of an import quota of 30X if Dx shifts down to Dx in such a way that Dx is parallel to Dx and crosses Sx at Px=$2.513 Starting with Dx and Sx and Px=$ 1 with free trade in figuer9.1 ,analyze the partial equilibrium effects of an import quota of 30X if Sx shifts u
13、p to Sx（parallel to Sx） and crosses Dx at Px=$3.514 Suppose that the autarky prices of commodity X in Nation A,B and C are the same as in problem 1, and the Nation A is too small to affect prices in nations B and C by trading. If Nation A initially imposes a nondiscriminatory ad valorem tariff of 50
14、 percent （rather than 100 percent ）on imports of commodity X from Nations B and C will Nation A produce commodity X domestically or import it from Nation B or Nation C?IF Nation A imposes a 100 percent ad valorem tariff on imports of commodity X from Nations B and C will Nation A will produce commod
15、ity X domestically because the domestic price of commodityX is $10 , as compared with the tariff-inclusive price of $ 16 if Nation A imported of commodity X from Nations B and $12 if Nation A imported of commodity X from Nations C.15 Draw a figure illustrating the effects of a trade-creating customs union?16 Measure the welfare gain of a nation joining this customs union.?17 Draw a figure illustrating the effects of a trade-diverting customs union that reduces the welfare of a nation joining it?
