Question.4728 - ScenarioFor this assignment, assume that American and Japanese workers can each produce four cars per year. An American worker can produce 10 tons of grain per year, while a Japanese worker can produce 5 tons of grain per year. To keep things simple, assume that each country has 100 million workers.DirectionsUsing the template provided in the What to Submit section, develop a short paper analyzing the international trade dynamics of the scenario above. Support your answers with sources from the textbook and your own research.Specifically, address the following:Production Possibility Frontier (PPF) ModelFor the United States, how many workers are needed to make one car? How many are needed to make one ton of grain? For Japan, how many workers are needed to make one car? How many are needed to make one ton of grain? Fill in Table 1 in the template. (See Figure 1 The Production Possibilities Frontier, Mankiw 3-1a: Production Possibilities for an example.)Insert a production possibilities frontier (PPF) graph from the textbook or a reputable online source (see the Supporting Materials section for tutorials on snipping images) and explain in two to three sentences what a PPF graph demonstrates and how it illustrates the idea of efficiency.Opportunity CostFor the United States, what is the opportunity cost of a car? What is the opportunity cost of grain? For Japan, what is the opportunity cost of a car? What is the opportunity cost of grain?Fill in Table 2 in the template. (See Table 1 The Opportunity Cost of Meat and Potatoes, Mankiw 3-2b: Opportunity Cost and Comparative Advantage for an example.)Interdependence and Gains From TradeWhich country has an absolute advantage in producing cars? Which country has an absolute advantage in producing grain?Which country has a comparative advantage in producing cars? Which country has a comparative advantage in producing grain?Without trade, half of each country’s workers produce cars, and half produce grain. What quantities of cars and grain does each country produce?Arguments for TradeResearch a current news article on international trade that supports economists' arguments favoring free trade agreements (FTAs). In what ways is the article supportive of FTAs?This assignment was adapted from the textbook Principles of Economics (10th edition) by N. G. Mankiw (2024).
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Module xxx Short xxxxx International xxxxxxxxxxx SalazarhernandezSouthern xxx Hampshire xxxxxxxxxxxxx MacroeconomicsProf xxxxx LignugarisMarch xx IntroductionThis xxxxx paper xxxxxxxx interdependence xxx the xxxxxxxx of xxxxxxxxxxxxx trade xxxxx on xxx following xxxxxxxx American xxx Japanese xxxxxxx can xxxx produce xxxx cars xxx year xx American xxxxxx can xxxxxxx tons xx grain xxx year xxxxx a xxxxxxxx worker xxx produce xxxx of xxxxx per xxxx Production xxxxxxxxxxx Frontier xxx ModelIn xxxx scenario xx are xxxxx that xxxx American xxx Japanese xxxxxxx can xxxxxxx four xxxx per xxxx This xxxxx that xx make xxx car xxxx country xxxxx one-fourth xx a xxxxxx workers xxxxxxx when xx comes xx grain xxxxxxxxxx American xxxxxxx are xxxx productive xx U x if xxx worker xxxxxxxx tons xx grains xxxx the xxxxxx of xxxxxxx required xx produce xxx ton xx grain xx workers xxxxxxxxx in xxxxx if xxxx worker xxxxxxxx tons xx grains xxxx workers xx needed xx produce xxx ton xx grain xxxx this xx can xxxxxxx that xxxx the xxxxxxxxx are xxxxxxx skilled xx making xxx car xxx U x has xx advantage xx making xxx ton xx grain xx the xxxxxx of xxxxxxx requires xx produce xx less xxxx that xx Japan xxxxxxx Needed xx Make xxx carOne xxx of xxxxxx S xx or xxxxx or xx Table x Production xxxxxxxxxxx Frontier xxx graph xxxxxxxxxxx the xxxxxxx possible xxxxxx combinations xx two xxxxx that x country xxx produce xxxxx its xxxxxxxxx resources xxx technology xxxxxx Points xx the xxx represent xxxxxxxxx use xx resources xxxxx points xxxxxx the xxxxx indicate xxxxxxxxxxxx and xxxxxx outside xxx unattainable xxxxxxx economic xxxxxx or xxxxxxxxxxxxx advancements xxxxxxxxxxx CostOpportunity xxxx is xxxx a xxxxxxx gives xx when xx chooses xx produce xxx product xxxxxxx of xxxxxxx In xxxx case xxx United xxxxxx producing xxx car xxxxx giving xx or xxxxxxxxxxx tons xx grains xxx producing xxx ton xx grains xxxxx sacrificing xxxx Similarly xxx Japan xxxxxxxxx one xxx means xxxxxx up xxxx of xxxxxx and xxxxxxxxx one xxx of xxxxxx means xxxxxx up xxxx Opportunity xxxxx OfOne xxx in xxxxx of xxxx of xxxxx given xx One xxx of xxxxx in xxxxx of xxxx given xx U x Japan xxxxx Interdependence xxx Gains xxxx TradeJapan xxxxx a xxxxxxxxxxx advantage xx car xxxxxxxxxx since xxx opportunity xxxx is xxxx tons xx grain xxx car xxxxxxxx to xxx tons xx grain xxx car xxxxxxxxxx by xxx United xxxxxx This xxxxx opportunity xxxx confirms xxxxx s xxxxxxxxxx in xxx manufacturing xxxxxxxxxx the xxxxxx States xxx a xxxxxxxxxxx advantage xx grain xxxxxxxxxx as xxx opportunity xxxx is xxxx per xxx of xxxxx significantly xxxxx than xxxxx s xxxx per xxx of xxxxx If xxxx country xxxxxxxxx half xx its xxxxxxx workers xx car xxxxxxxxxx and xxx other xxxx to xxxxx production xxxxx output xxxxx be xx follows xxxxxx States xxxxxxx workers xxxxxxxxx cars x m xxxx million xxxxxxx producing xxxxx m x tons xx grainJapan xxxxxxx workers xxxxxxxxx cars x m xxxx million xxxxxxx producing xxxxx m x tons xx grain xxxx efficient xxxxxxxx allocation xxxx nations xxx optimize xxxxx production xxxxxxx specializing xxxxx on xxxxxxxxxxx advantage xxx engaging xx trade xxxxx further xxxxxxx overall xxxxxxxxxx and xxxxxx Arguments xxx TradeAfter xxxxxxx an xxxxxxx Which xxxxxxxxx benefits xxx most xxxx free xxxxx agreements xxxxxxx et xx I xxxxxxxxxx that xxx Boston xxxxxxxxxx Group xxx highlights xxx Free xxxxx Agreements xxx essential xxx increasing xxxxx strengthening xxxxxxxxx and xxxxxx both xxxxxxxxxxx and xxxxxxxxxx a xxxxxxxxxxx edge xxxx the xxxxx Trade xxxxxxxxxxxx WTO xxxxxx difficulties xx driving xxxxxx trade xxxxxxxxxx many xxxxxxxxx are xxxxxxx to xxxxxxxxxx or xxxxxxxx trade xxxxx to xxxx their xxxxxxxx objectives xxxxxxx not xxx FTAs xxxxxxx the xxxx level xx benefits xxxx are xxxx effective xxxx others xx encouraging xxxxxxxx growth xxx aligning xxxx national xxxxxxxxxx plans xx order xx assist xxxxxxxxxx assess xxxxx FTAs xxxx best xxx has xxxxxxxxx the xxxxx Engagement xxxxx This xx a xxxx which xxxxxxxx the xxxxxx of xxxxxxxxx trade xxxxxxxxxx and xxxxx stakeholders xxxx smarter xxxxxxxxx ReferencesGilbert x Lang x McAdoo x Olsen x Rafih x Konomi x February xxxxx Economies xxxxxxx the xxxx from xxxx Trade xxxxxxxxxx BCG xxxxxx https xxx bcg xxx publications xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx N x Principles xx economics xx ed xxxxxxxMore Articles From ECO202 Macroeconomics
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