General Equilibrium Analysis in International Trade - Exonomics Assignment Solution Answers - University Garduate/Masters Level

Background: This assignment delves into general equilibrium analysis to understand the complex interactions in international trade.

Tasks:

1. Examine a case study involving two countries engaged in international trade, considering factors such as comparative advantage, tariffs, and trade policies.
2. Develop a multi-sector general equilibrium model to represent the interdependencies among industries, households, and the government in each country.
3. Perform numerical simulations to analyze the effects of changes in trade policies (e.g., tariff reductions) on prices, production, and welfare in both countries.
4. Discuss the implications of your analysis on trade negotiations and policy recommendations.

 

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