Land- and labor-intensive, International Economics

Assignment Help:

Q.. "A good cannot be both land- and labor-intensive." Discuss.

Answer: In a two good or two factor models for instance the original Heckscher-Ohlin framework and the factor intensities are relative intensities. Therefore, the relevant statistic is also workers per acre (or acres per worker) or rental per wage or wage per rental unit. In order to exemplify the logic of the statement above, let us suppose that the production of a broom requires 4 workers and 1 acre. As well, let us suppose that the production of one bushel of wheat requires 40 workers and 80 acres. In this case the acres per person necessary to produce a broom is one quarter, where to produce a bushel of wheat requires 2 acres per person. The wheat is thus (relatively) land intensive furthermore the broom is (relatively) labour intensive.


Related Discussions:- Land- and labor-intensive

Describe the main provisions of maastricht treaty of 1991, Q. Descr...

Q. Describe the main provisions of the Maastricht Treaty of 1991. Answer: It identified for a single currency by January 1/1999 harmonizing social security policy insid

Effects of permanent increase in united states money supply, Using 4 differ...

Using 4 different figures, plot the time paths showing the effects of a permanent increase in the United States money supply on: A.              U.S. money supply. B.

Effects of increase in european money supply on dollar, Analyze the effects...

Analyze the effects of an increase in the European money supply on the dollar/euro exchange rate. Answer:  The major points are: A raise in the European money supply will reduc

Law of reciprocal demand trade, explain the law of reciprocal demand trade ...

explain the law of reciprocal demand trade theory of marshall

#the classical theory of international trade title.., Critically evaluate t...

Critically evaluate the classical theory of international trade

Low-inflation reputation, Q. Explain how the German Bundesbank gain...

Q. Explain how the German Bundesbank gained its low-inflation reputation. Answer: Essentially Germany's experience with hyperinflation in the 1920s and yet again aft

Trends in Internal Business, Since the 1990s there has been an increasing n...

Since the 1990s there has been an increasing number of Regional Trade Arrangements(RTA). According to WTO in 2012 the number of RTA increase 2 fold compared to the 90s to 497. Is r

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd