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

Free trade, how to determine free trade for small country

how to determine free trade for small country

Hospital manager function, Hospital Manager Function The manager of th...

Hospital Manager Function The manager of the hospital in IMC is responsible for many things: • Follow-up to the orderly conduct of work at the hospital to achieve high qual

Journal of health, You will submit a report that shows your investigation o...

You will submit a report that shows your investigation of your focus question.  Your report must be 1500 - 2000 words in length written for the journal Health Australia, a journal

How two countries foreign exchange market linked together, Explain how the ...

Explain how the money markets of two countries are linked through the foreign exchange market. Answer:  The financial policy actions by the Fed affect the U.S. interest rate al

Trade, What are the reasons behind the growing importance of services in tr...

What are the reasons behind the growing importance of services in trade ?

Trade, trade experience of developing countries

trade experience of developing countries

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

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

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