Gravity Model Problem Set
International Trade Theory
ECO364
Assistant Professor Peter M. Morrow
Due: January 20th, 2014
Recall the gravity model of international trade in which trade between two count
ECO364
Problem Set 1
Answer Key
1. (a) Let pX and pY be the price of X and Y respectively. Under autarky, the relative price is
equal to the marginal rate of transformation. Therefore,
M P LY
pX
=
= 2
Gravity Model Problem Set
SOLUTIONS
International Trade Theory
ECO364
Assistant Professor Peter M. Morrow
Due: January 20th, 2014
Recall the gravity model of international trade in which trade between
Gravity Model Problem Set
International Trade Theory
ECO364
Assistant Professor Peter M. Morrow
Recall the gravity model of international trade in which trade between two countries i and
j can be summ
Gravity Model Problem Set
Economics 364: International Trade Theory
Associate Professor Peter M. Morrow
Due: January 25th, 2016
Recall the gravity model of international trade in which exports from co
Ricardian Problem Set
ECO364
University of Toronto
Professor Peter M. Morrow
The details of the model are as follows:
Two countries: North and South
Two goods: computers and textiles
DC and DT are con
ECO364
Problem Set 3
1. Home produces two goods, X and Y, using two factors, capital and labor. The amount of
labor required to produce a unit of X is 1, and a unit of Y is 2. The amount of capital re
IMPORTANT:
Place your NAME and ID NUMBER on your bubble form.
ECO364 H1F, Summer 2013
Instructor: Mengxiao Liu
Final Exam
June 27, 2013
10:10am-1:10pm
Fill in the information below:
Name_
Student ID _
Ricardian Problem Set
ECO364
University of Toronto
Professor Peter M. Morrow
The details of the model are as follows:
Two countries: North and South
Two goods: computers and textiles
DC and DT are con
ECO364
Problem Set 3
Answer Key
1. (a) The labor and capital market clearing conditions are given by,
X + 2Y = 30.
X + 3Y = 40.
Solving, we get X = 10 and Y = 10.
(b) The new labor and capital market
Gravity Model Problem Set
SOLUTIONS
International Trade Theory
ECO364
Assistant Professor Peter M. Morrow
Due: January 20th, 2014
Recall the gravity model of international trade in which trade between
ECO364
Problem Set 1
Answer Key
1. (a) Let pX and pY be the price of X and Y respectively. Under autarky, the relative price
is equal to the marginal rate of transformation. Therefore,
pX
M P LY
=
= 2
Ricardian Problem Set
ECO364
University of Toronto
Assistant Professor Peter M. Morrow
The details of the model are as follows:
Two countries: North and South
Two goods: computers and textiles
DC and
Heckscher-Ohlin Practice Problem (solutions)
Assume that all of the standard Heckscher-Ohlin assumptions hold. Note that given
perfect competition, all countries behave as price takers. Suppose we obs
ECO364 International Trade Theory
Problem set 1
Due date: January 26 in class or earlier by appointment
Suppose that Canada and U.S. trade automobiles (A) and cloth (C). In
the U.S. it takes one worke
ECO364
Problem Set 1
Ricardian model
1. Home can produce two goods - X and Y using only labor. The technology for producing the two goods is given by M P LX = 1 and M P LY = 2. Home has 60 workers.
1
MID-TERM (FALL 2013)
ECO364 (L0101)
Answer Key
1. Short answer type questions (9 points)
(a) In the short run, a country might import everything. But eventually, trade has to balance,
implying that th
ECO364 International Trade Theory
Session 4: Heckscher-Ohlin model
Andrey Stoyanov
University of Toronto
Heckscher-Ohlin model: Introduction
I
Up to this point we analyzed cross-country dierences in
p
ECO 364 - Topic 1
The Ricardian Model
Kunal Dasgupta
Dasgupta (UofT)
Ricardian model
1 / 36
Motivation
Switzerlands trade
Switzerland is one of the biggest exporters of precision equipments
like watch
IMPORTANT:
Place your NAME and ID NUMBER on your scantron form.
Economics 364H1F, Fall 2011
Final Exam
June 26, 2012
10:10am-13:10pm
Fill in the information below:
Name_
Student ID _
INSTRUCTIONS
1. T
Imperfect Competition and Trade
Practice Problem
Economics 364H1F
Prof. Peter M. Morrow
I) Equilibrium in the Monopolistic Competition Model
In a market characterized by monopolistic competition we ha
Gravity Model Problem Set
Economics 364: International Trade Theory
Associate Professor Peter M. Morrow
SOLUTIONS
Recall the gravity model of international trade in which exports from country i to cou
Imperfect Competition and Trade
Problem Set #4
Economics 364H1F
Prof. Peter M. Morrow
I) Equilibrium in the Monopolistic Competition Model
In a market characterized by monopolistic competition we have
ECO364 International Trade Theory
Problem set 3: Heckscher-Ohin model
Due date: February 9 in class or earlier by appointment
Problem 1
Suppose two countries, H and F , trade two goods - steel (S) and
IMPORTANT:
Place your NAME and ID NUMBER on your scantron form.
Economics 364H1F, Fall 2011
Assistant Professor Peter Morrow
Final Exam
SOLUTIONS
December 19th, 2011
7:00pm-10:00pm
Fill in the informa
ECO364: Second Practice Ricardian Problem
Two goods: Computers and Furniture.
Two countries: Home and Foreign.
There are 300 workers in Home and 30 workers in Foreign.
For Home, the unit labor require
IMPORTANT: Place your NAME, FORM NUMBER
and ID NUMBER on your scantron form.
Economics 364H1F, Fall 2008
International Trade
Professor Peter Morrow
FINAL EXAMINATION
SOLUTIONS
December 12th, 2008
FORM
ECO364
Problem Set 2
1. Consider the specic factors model with two sectors X and Y . The specic factor for
producing X is capital, while the specic factor for producing Y is land. Labor is used in bot
ECO364: International Trade
Mengxiao Liu
University of Toronto
[email protected]
ECO364 (International Trade) Summer 2013
1
Administration: Books and Blogs
We will use International Econo
Ricardian Problem Set
ECO364
University of Toronto
Associate Professor Peter M. Morrow
DUE: Monday, February 8th, 2016
The details of the model are as follows:
Two countries: North and South
Two goods
Economics 364: International Trade Theory
Problem Set #1: The Gravity Model
Due: Friday January 19th, 2018
Recall the gravity model of international trade in which exports from country i to country j
ECO 364: International Trade
Sample Problem Set for the HO Model: Solutions
Part (a)
The utility maximization problem for a household with income I that faces goods prices
p1 and p2 is:
1
max (C1 C2 )
New Learning Outcomes:
1) Describe the relationship between international economics and international
trade.
Outline the role of consumer preferences, migration, investment and
resources
Outline key
ECO 364: International Trade
Problem Set 4
Due date: 5:00 PM, 23 November 2017
Consider the model of oshoring studied in class. There is a single nal good that is
produced by assembling a continuum of
ECO 364: International Trade
Problem Set 5 Solution
Part (a)
Demand for the good by consumers in Home is:
QD = aD bD P
(1)
Hence, the inverse demand function is:
P =
1
aD
Q
bD
bD
(2)
If the Foreign m