Relative capital abundance, International Economics

Assignment Help:

Q. Consider that the relative capital abundance of Australia was so much greater than that of Sri-Lanka, that we would have to locate Australia far to the right on the K/L axis. If this were so far to the right that there was no area of overlap on the w/r axis, then which product would Australia export?

Answer: Australia export food like a result of trade wages will fall in Australia and will rise in Sri-Lanka. Though in this case the wages in Australia will stay higher than in Sri-Lanka create an incentive for migration from the latter to the former country.


Related Discussions:- Relative capital abundance

Analyze the effects of devaluation on an economy, Q. Analyze the effects of...

Q. Analyze the effects of devaluation on an economy. Answer: Devaluation basis a rise in output a rise in official reserves and an expansion of the money supply.  A private cap

Types of transactions between the residents of countries, Q. What a...

Q. What are the three types of transactions between the residents of different countries? Answer: 1. Trades of services and goods for goods or services. 2

Distinction between debt and equity instruments, Q. Why is it usefu...

Q. Why is it useful to make a distinction between debt and equity instruments? Answer: Debt instruments such as bank deposits and bonds are repaid regardless of econo

Can currency boards make fixed exchange rates credible, Q. Based on the cas...

Q. Based on the case study, answer the following question: Can currency boards make fixed exchange rates credible? Answer: No for the reason that is prohibited by law from a

Dev Planning and Project Eva, 1. Species that have reached the extinction t...

1. Species that have reached the extinction threshold and are on the verge of extinction – beluga whales, African elephants, mountain gorillas and the California condor might be cl

What can one learn from the following figure, Q. What can one learn from th...

Q. What can one learn from the following figure? Answer: The figure shows the U.S. current account as well as net foreign wealth from 1977 until 1996. It illustrate that a

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