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

Peripheral Capitalism, I am writing a paper on dependancy theory in Ghana a...

I am writing a paper on dependancy theory in Ghana and I am having trouble understanding the basics of peripheral capitalism.

Explain the fundamental equation of the monetary approach, Q. Prese...

Q. Present and explain the Fundamental Equation of the Monetary Approach. Answer: Suppose E$/E = PUS/PE and that domestic price levels depend on domestic money demand

#title opportunity cost theory, review the general equilibrium conditions u...

review the general equilibrium conditions under autarky and given free trade using the opportunity cost theory of trade

Economy under fixed and floating exchange-rate regimes, Q. Use the DD - AA ...

Q. Use the DD - AA model to examine and compare the response of an economy under fixed and floating exchange-rate regimes to a temporary fall in foreign demand for its exports.

Terms of trade, what is net barter terms of trade and the effect on its eco...

what is net barter terms of trade and the effect on its economy

Forward hedging, Assume that Deborah Electronics expects a delivery of Fuji...

Assume that Deborah Electronics expects a delivery of Fujitsu laptops in a month from a Japanese supplier. Each laptop sells at $1000 in a retail market whereas the import cost is

Economic reasoning behind this behaviour, In this year, the Bank of Canada ...

In this year, the Bank of Canada raised the target for overnight rate consistently and continuously.  The rate changes are as follows: Date Target (%)

Economic development of an economy, Question: Banks contribute to the e...

Question: Banks contribute to the economic development of a country. Banks have always been financing projects that help individuals and enterprises fulfill their plans. Howev

Existence of external economies of scale, (a) Consider there are two countr...

(a) Consider there are two countries (country 1 and country 2) with two goods (X and Y). Further, under the assumptions of the Ricardian model, country 1 specialise in goods X. De

Postwar worlds key currency, Q. Explain why the dollar of the United ...

Q. Explain why the dollar of the United States became the postwar world's key currency. Answer: 1. The untimely convertibility of the U.S dollar in 1945. 2.

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