Ratios across countries and then compare these ratios

Assignment Help Business Economics

Reference no: EM13893293

If economists wish to determine relative factor abundance across countries, why don’t they simply calculate w/r ratios across countries and then compare these ratios?

Reference no: EM13893293

Questions Cloud

What features of the product cycle theory : What features of the product cycle theory are at variance with the assumptions of the Heckscher-Ohlin model? Explain.

The heckscher-ohlin model is best-suited : Suppose someone stated that the Heckscher-Ohlin model is best-suited for explaining trade between developed countries and developing countries, while newer theories such as those of Linder and Krugman are best-suited for explaining trade among develo..

Krugman model of trade differ from the heckscher-ohlin : In what ways does the Krugman model of trade differ from the Heckscher-Ohlin model of trade? Carefully explain. In what ways does the Linder theory of trade differ from the Heckscher-Ohlin model of trade? Carefully explain.

Heavily protected its farm sector through import duties : The European Union has heavily protected its farm sector through import duties; in addition, the Union subsidizes its exports of agricultural products. If “cropland” is regarded as a factor of production and is included in the Leontief statistic (alo..

Ratios across countries and then compare these ratios : If economists wish to determine relative factor abundance across countries, why don’t they simply calculate w/r ratios across countries and then compare these ratios?

Explain how the heckscher-ohlin theorem is obtained : Explain how the Heckscher-Ohlin theorem is obtained, using either the “physical” definition or the “price” (or “economic”) definition of relative factor abundance.

Intensity reversals were indeed prevalent in real world : If factor-intensity reversals were indeed prevalent in the real world, how might this fact be used to explain the Leontief paradox? If this explained the paradox, would it suggest that any given U.S. trading partner stood a better chance of conformin..

Demand reversal were the cause of the leontief paradox : The text notes that, if demand reversal were the cause of the Leontief paradox, then labor would be relatively cheap in the United States. Explain the reasoning behind this statement.

What assumptions seem crucial for making this inference : How can it be said that the factor-content approach “reveals” a country’s factor abundance? What assumptions seem crucial for making this inference? Explain.

User Account

All Pages