Tag Archives | Trade Equilibrium

The Offer Curve | Trade Equilibrium | Economics

For analysing the trade equilibrium of a country, another device that is employed is the Offer Curve or, more precisely, the Trade Offer Curve of a country. The trade offer curve indicates what quantities of a particular commodity one country are willing to offer in exchange of certain quantities of another commodity. In other words, the offer curve shows the [...]

By |2018-03-15T11:34:37+05:30March 15, 2018|The Offer Curve|Comments Off on The Offer Curve | Trade Equilibrium | Economics

The Production Possibility Curve | Trade Equilibrium | Economics

A production possibility curve is the locus of such combinations of two commodities that a country can produce, given the techniques of production and the fullest utilization of all the available factors of production. It is also called as production frontier, transformation curve, product substitution curve or an opportunity cost curve. If all the available productive resources are employed in [...]

By |2018-03-15T11:34:37+05:30March 15, 2018|The Production Possibility Curve|Comments Off on The Production Possibility Curve | Trade Equilibrium | Economics

Two-Country Trade Equilibrium | International Trade | Economics

In two-country trade equilibrium model it is supposed that there are two countries A and B and they produce two commodities— X and Y. The trade equilibrium of these countries can be analysed under constant, increasing and decreasing cost conditions as below: 1. Trade Equilibrium under Constant Costs: In this case it is supposed that both countries A and B [...]

By |2018-03-15T11:34:37+05:30March 15, 2018|Equilibrium|Comments Off on Two-Country Trade Equilibrium | International Trade | Economics
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