Professional Documents
Culture Documents
9C PDF
9C PDF
International Economics
Theoretical Bases
of International Trade
By:
Antonio, Zarahlyn C.
Languisan, Stefany Eden C.
Trinidad, Jennifer Lorelie Clare P.
4/14/2015
JPN has an absolute disadvantage in both sugar and rice; sJPN has a less
disadvantage in rice.
JPN has a comparative advantage in rice and comparative disadvantage
in sugar.
PH has a comparative advantage in sugar and comparative disadvantage
in rice.
When PH and JPN exchange 10rice 10sugar, PH gains 4sugar.
To produce 10rice, JPN needs 10 days of labor but can utilize these to
produce 40sugar.
JPN can exchange 10sugar for 10rice and keep the remaining 30sugar.
PH would gain 4sugar and JPN would gain 5rice.
4/14/2015
Trade
Trade Barriers
Trade Barriers
Trade Barriers
4/14/2015
Trade Barriers
3. Embargo stops exports of a product or
group of products. Sometimes all trade
with a country is stopped, usually for
political reasons.
Effect: The embargo is the harshest
type of trade barrier and is usually
enacted for political purposes to hurt a
country
economically
and
thus
undermine the political leaders in
charge.
4/14/2015
4/14/2015