How the inflow of capital affects industry outputs in home

Assignment Help Econometrics

Reference no: EM131308708

Suppose Home is a small open economy and received a significant amount of capital.

1) Suppose that Home produces both computers and shoes using labor and capital. Both factors are perfect mobile across industries. The production of computers is more capital intensive than the production of shoes. All assumptions of the HO model holds except that capital can move across countries. Analyze, algebraically, how the inflow of capital affects the industry outputs in Home.

2) Suppose that Home produces agricultural goods using land and labor, and produces manufacturing goods using capital and labor. Land is specific to the agriculture sector and capital is specific to manufacturing sector. Labor is perfectly mobile across sectors. All assumptions of the specific-factors model holds except that capital can move across countries. Analyze how the inflow of capital affects the industry outputs in Home.

Reference no: EM131308708

Questions Cloud

Problem regarding the decision-making process : Question 1: Refer to Figure 9.1 about the decision-making process. Describe how you went about making a recent major decision. What steps did you take? Did you follow the classical or behavioral decision model? Describe the extent to which you fo..

What is the role of a project manager and program manager : What is the role of a project manager and program manager? What are the skills, knowledge, and abilities required to be project manager? Name five critical success factors and why they are important to the success of a project.

Difference between mitigation and preparedness : What kinds of organizations must consider disaster preparedness?- What is the difference between mitigation and preparedness?

Address the hazards identified in the community plan : Create a mitigation plan for yourself that addresses the hazards identified in the community plan as they affect you on a personal level.

How the inflow of capital affects industry outputs in home : All assumptions of the specific-factors model holds except that capital can move across countries. Analyze how the inflow of capital affects the industry outputs in Home.

Discuss the general characteristics of organization : Discuss and clearly identify the general characteristics of the organization, as well as the proposed ERP system. All characteristics should be clearly described and justified with details and examples.

Connection between ethics and morality : Describe a brief explanation of a connection between Ethics and Morality. Then suggest strategies that a public policy maker or administrator might use to address morality related to poverty tourism. Finally, compare how liberal and libertarian pu..

Developing a strategic plan : Define and explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas.

What are some impediments faced by communities : What are some impediments faced by communities wishing to perform hazard mitigation?- Name the primary federal mitigation programs, and explain how they serve to reduce hazard risk.

User Account

All Pages