Effects on Trade after Improve Environmental Quality

Effects on Trade

Effects on Trade after Improve Environmental Quality, What happens to the output of a nation and its effect on trade when it decides to improve environmental quality? Some goods and services are simply not traded internationally. It is certainly true of intangibles such as environmental quality. Pollution control aims at internalizing environmental externalities. In so … Read more

Transformation and Community Indifference Curves

Transformation and community indifference curves

General Equilibrium Transformation and Community Indifference Curves for two countries H and F, and two products A and B. we explain in the diagram. General Equilibrium Transformation and Community Indifference Curves: The two countries’ respective trade indifference curves drawn from the tangencies of the trade indifference curves with the various terms of trade lines. It … Read more

Offer Curve and Explain the Derivation Offer Curve

Derivation of Offer Curve

Offer Curve and Explain the Derivation of Offer Curves by different examples, let us start. It shows different amounts of the importable commodity which a country demand in response to one unit of exportable commodity. The offer curve of a country shows the nation’s willingness to import and export at various relative commodity prices. Now … Read more

Contrast and Community Indifference Curve

Contrast and Community indifference Curve

Contrast and Community Indifference Curve and use of these in the field of International Trade. The PPC of the country shows the supply side of that country while the Contrast and Community indifference curve represents the demand side of the economy. Indifference Curve Definition An indifference Curve is defined as depicting all possible combinations of … Read more

Production Possibility Curve: Under Increasing Opp

Production Possibility Curve -PPC

Production Possibility Curve (PPC) represents the supply side in international trade equilibrium. What do we understand by PPC what different shapes it can assume? show with the help of a diagram? how it is possible the same output makes a different result of production and efficiency. we explain it in different diagrams. It shows the … Read more

Factor Endowments Difference: Traditional Theory, Variations

Factor Endowments Difference

Factor Endowments difference means International trade accurses due to the difference in the availability of factors of productions, that is factor endowment difference. The traditional theory of comparative advantage suggests international variations of factor productivity or efficiency as a basic reason. But the fundamental causes of the international differences in the conditions of production are … Read more

Two-Variable Regression Model: Estimation Problem

Autocorrelation Diagram

Two-Variable Regression Model faces estimation problems in formulas: The method which is used to fit a regression line to a given sample data is called Ordinary Least Square (OLS) method or Least Square (LS). We discussed Method of Least Square (LS), Ordinary Least Square (OLS) This method consists of minimizing the sum of the squares … Read more

Comparative Advantage: Determination, Explanation

Comparative Advantage

Comparative advantage means, suppose we look at a hypothetical world composed of only two countries Canada and the United States. Both countries produce significant quantities of wheat and corn for domestic consumption and these are at first absolutely no trade relations, factors movements, or other economic ties between them. Trade Under Comparative Advantage Each is … Read more

International Economics Part’s with Concept

International Economics Part's with Concept

International Economics, Part’s with Concept we discussed with detail in this topic International Economics Explanation International economics deals with the economic activities of different countries and their consequences. In other words, international economics is a sector that deals with the economic relations of countries and the impact of international affairs on global economic activity. International … Read more

Regression Analysis: Explanation, Types, and Formula

Regression Analysis: Explanation, Types, and Formula

Regression Analysis: Explanation, Types, and Formula. The term Regression was introduced by “Sir Francis Galton” to describe the Phenomenon which he observed about the relationship between the heights of children and their parents. Today, used in quite a different sense. It investigates the dependence of one variable (called dependent variable) on one or more other … Read more

Econometrics: why a separate Subject?

Econometrics: why a separate Subject? even they have many other theories. As we know that Econometrics is a combination of Economic Theory, Mathematical Economics, Economic Statistics, and Mathematical Statistics then why we study Econometrics as a separate subject? The reasons are as follows. Economic Theory Economic theory makes statement or hypothesis that are mostly qualitative … Read more

Introduction to Econometrics: Methodology of Econometrics (easily explained)

introduction to econometrics

Introduction to Econometrics: Methodology of Econometrics (easily explained) that “Econometric Measurement” Although measurement is an important part of econometrics, econometrics is much broader. Econometrics, the result of a particular approach, involves the application of mathematical statistics to economic data to provide experimental support to models developed by mathematical economics and to obtain numerical results. The … Read more