Comparative advantage in the land-intensive product, International Economics

Assignment Help:

Q. Factor-intensity reversals define a situation in which the production of a product can be land-intensive in one country, and relatively labor intensive in another ( at given relative wage levels). For example, cotton can be land intensive in the U.S., and labor intensive in Egypt where land is relatively expensive and scarce. Consider factor-intensity reversals were common. How could that affect the conclusion that a country in which land is relatively scarce will not be the country with a comparative advantage in the land-intensive product?

Answer: The answer here is simple though it has various interesting implications. In this case we can't identify or define a product in terms of its relative factor intensity at all or any relative wage level. so the Hecksher-Ohlin Theorem is ipso-facto inapplicable.


Related Discussions:- Comparative advantage in the land-intensive product

Partial equilibrium analysis, how do I graph partial equilibrium analysis w...

how do I graph partial equilibrium analysis with transport costs

Increasing cost theory in international trade, A good analysis in increasin...

A good analysis in increasing cost theory with graphical analysis

Protectionism, what are the theories supporting protectionism

what are the theories supporting protectionism

International trade, why is international trade important for south africa

why is international trade important for south africa

Trade, trade experience of developing countries

trade experience of developing countries

Wto, economic theories to explain free traden..

economic theories to explain free traden..

Demand for a countrys exports, Q. Using the GG - LL framework, analyze the ...

Q. Using the GG - LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country's exports. Answer: Such a alter pus

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

Critically evaluate the classical theory of international trade

What facts could proponents of an expansion of nafta, Q. It is still the c...

Q. It is still the conventional wisdom in the U.S. that compliance with NAFTA needs is having a deleterious effect on U.S. highway safety standards, on U.S. pollution and other en

Who are the main actors in the international capital market, Q. Who...

Q. Who are the main actors in the international capital market? Answer: 1. Commercial banks. 2. Corporations. 3. Non-bank financial institution

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