ADVANCED PRICING TECHNIQUES Assignment Example | Topics and Well Written Essays - 250 words

ADVANCED PRICING TECHNIQUES - Assignment Example US has an absolute advantage in ______________Chemicals____________ (apparel, chemicals, both apparel and chemicals, neither apparel nor chemicals). e. China has a comparative advantage in ________ both apparel and chemicals __________________ (apparel, chemicals, both apparel and chemicals, neither apparel nor chemicals). US has a comparative advantage in __________ neither apparel nor chemicals ________________ (apparel, chemicals, both apparel and chemicals, neither apparel nor chemicals). g. Compared to the initial optimal product combinations D and S, world output of chemicals is ________smaller________ (smaller, greater) by __18___ tons of chemicals and world output of apparel is ________greater________ (smaller, greater) by __28___ 1000 units of apparel. i. Based on the actual terms of trade in previous part of this question, US can now choose four 1000 units of apparel and ___1.5___ tons of chemicals and China can now choose six tons of chemicals and ___1.5___ 1000 units of apparel. Specialization and trade between the two nations has ______decreased________ (decreased, increased) the standard of living in US and has ________Increased______ (decreased, increased) the standard of living in