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What are factor endowment implications?
Implications of factor endowment:
• Less Developed Countries to specialise and export labour intensive goods, agriculture or commodities. Conversely labour intensive goods have low value added therefore low wages while agriculture goods have low YED and PED
• Enhancing the productivity of factor inputs by better knowledge, skill and training generates growth thus development.
What are the assumptions of Lewis? LDCs (Less Developed Countries) have two (dual) economies as: • Rural traditional economic and social practices, which overpopulated, s
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interaction between the two market force, demand and supply
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