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

International Trade, alternative explanations to the theory of internationa...

alternative explanations to the theory of international trade.

Sovereign wealth funds on gdp, In as much as Sovereign Wealth Funds (SWFs) ...

In as much as Sovereign Wealth Funds (SWFs) are established to achieve national objectives, the intentions of the United Arab Emirates -- one of the world's largest -- are open to

Discuss the effects of a change in u.s. expected inflation, Q. To answer th...

Q. To answer the following question, please refer to the figure below. Concentrating only at the lower right quadrant, discuss the effects of a change in U.S. expected inflation.

What is the fisher effect?provide an example, What is the Fisher Effect?  P...

What is the Fisher Effect?  Provide an example. Answer: All moreover equal a rise in a country's expected inflation rate will ultimately cause an equal rise in the interest rat

Consumers and businesses, if the US dollar depreciates dramatically relativ...

if the US dollar depreciates dramatically relative to the Chinese yuan, what effect would this have on consumers and businesses in each country? When is a falling dollar good or ba

Why heckscher-ohlin theory called factor-proportion theory, Q. Why is the ...

Q. Why is the H.O. model called the factor-proportion theory? Answer: The H.O. model survey the limitations and the nature of presumptuous that the sole determinant of compar

Explain the specific objectives of fiscal incentives, Question: (a) ...

Question: (a) Illustrate the differences between inter and intra industry trade. (b) Foreign Investors generally tend to adopt a two-stage process when evaluating count

Terms of trade, 1.concepts of terms of trade,factors affecting terms of t...

1.concepts of terms of trade,factors affecting terms of trade. 2.gross & net barter terms of trade. 3.terms of trade & economic development

Porter competitive forces model, Porter Competitive Forces Model:   ...

Porter Competitive Forces Model:         Effectively dealing with the competitive forces that exist within its industry lead to a successful organization. The organization i

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