Discuss the hechscher-ohlin model, International Economics

Assignment Help:

Q. Countries that are willing to tolerate an unusually high quantity of pollution relative to their supplies of other factors would leads to export "pollution-intensive" goods. Discuss using the Hechscher-Ohlin (H.O.) model.

Answer: This statement is deficiently crafted. It appears to imply that pollution per say is a proper factor of production. Namely, just like if you add a worker, you obtain additional product, thus the marginal product of pollution is positive. The trouble here is that pollution isn't really a factor of production, but somewhat an externality, which may perhaps be more typical of imported goods than exported ones. In such a case that, the above statement is false.


Related Discussions:- Discuss the hechscher-ohlin model

Flexible exchange rate regime, under fleible exchange rate regime what are ...

under fleible exchange rate regime what are the consenquences of current account deficit and surplus

Case study of savings and loans association, Argus Savings and Loan Associa...

Argus Savings and Loan Association began in 1956 in Hometown. As is typical of savings and loan associations, Argus accepts the savings of individuals and organisations and uses th

How does fall in real interest rate affect consumption, Q. Consider the eco...

Q. Consider the economy is initially consuming along the intertemporal budget constraint at point A, where no saving occurs. How does a fall in the real interest rate, r, and affe

Describe the effects of the smoot-hawley tariff, Q. Describe the effects of...

Q. Describe the effects of the Smoot-Hawley tariff imposed by the United States in 1930. Answer: It had a damaging consequence on employment abroad. The foreign response occu

Theories about the problems of lower income countries, Theories about the P...

Theories about the Problems of LICs are discussed below: In order to explain this big problem of poverty and of the asymmetric ownership of the wealth and income in the world,

Differences between absolute ppp and relative ppp, Q. Discuss the d...

Q. Discuss the differences between Absolute PPP and Relative PPP. Answer: Absolute Purchasing Power Parity (PPP) states that the exchange rate between two currencies e

International monetary system influence macroeconomic policy, Q. How did th...

Q. How did the international monetary system influence macroeconomic policy-making and performance during the interwar period (1918 - 1939)? Answer: Governments efficiently sus

Show distributional effects on the relative incomes, Q. The Specific Fact...

Q. The Specific Factors model clearly illustrates how the expansion of trade can have significant distributional effects on the relative incomes of different factors of productio

Free trade, how to determine free trade for small country

how to determine free trade for small country

Absolute advantage by adam smith, which book by adam smith explains the abs...

which book by adam smith explains the absolute advantage ?

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