: 7. Comparative advantage and import competition The Czech Republic recently joined the European Union (EU) and faces Intense import competition from other EU members, such as France. Suppose you have the following data on labor productivity for paper and corn production in the Czech Republic and France. Assume that paper and corn production are measured in constant dollars reflecting the value of the products. Use the Ricardian model to analyze possible effects on each country’s paper and com industries when answering the questions that follow. Corn Country The Czech Republic France Sales per Employee Paper (Dollars per year) (Dollars per year) 41,000 20,500 82,000 32,800 The table suggests that France has an absolute advantage over the Czech Republic in and a comparative advantage in The table suggests that wages in France are in the Czech Republic. As a result of the Czech Republic’s joining the EU, employment in the Czech Republic is likely to fall in True or False: The degree of openness of the Czech economy will have a negligible impact on the level of employment. O True False

Have a writer answer this question by clicking below. If you have any questions you can contact us via live chat.