LEARN MORE...

Unit Ii Assignments

Content type

User Generated

Subject

Management

Type

Homework

Uploaded By

puevfflq909

Pages

Showing Page:

1/9

Running Head: UNIT II ASSIGNMENTS 1

Unit II Assignments

Student Name:

Institution Affiliation:

Date:

Showing Page:

2/9

UNIT II ASSIGNMENTS 2

Question 1:

The factor endowment refers to the amount of money, labor, entrepreneurship, and land

that a nation can exploit for manufacturing (Quang, 2013). The nations that have large factor

endowments are economically comfortable than the others. In the case study, the capital-labor

ratio of the manufacturing goods is ¼ while that of the agricultural goods is 1/8 hence ¼ is larger

than 1/8 making manufacturing goods relatively capital intensive. The labor-capital ratio of

manufacturing is 4/1 while that of the agricultural goods is 8/1 hence making the agricultural

goods relatively labor intensive.

The capital-labor ratio of Germany is 1/5 while that of Italy is 1/6. This makes Germany

capital abundant. A capital-abundant nation is known to export the capital-intensive good, while

the labor-intensive are exported by the nation that is good labor-abundant. Germany is capital

abundant in this case. Hence, it will export the manufacturing goods that are capital-intensive.

The labor-capital ratio of Germany is 5/1 while that of Italy is 6/1 making Italy labor abundant.

Italy will export the agricultural goods in this case. Primarily, when the nations are not trading,

the capital-intensive good prices in the countries that are capital-abundant will relatively be bid

to the price of the commodity in the other nation. The labor-intensive good prices in the

countries that are labor-abundant will relatively be bid to the price of the commodity in the other

nation (Quang, 2013).

Question 2:

In the case, Germany is skilled-labor abundant while Italy is unskilled-labor abundant.

The computers are skilled-labor intensive, and the food is unskilled-labor intensive. By

liberalization of the trade between the countries, they are permitting the skilled employees to

Showing Page:

3/9

End of Preview - Want to read all 9 pages?

Access Now

Unformatted Attachment Preview

Running Head: UNIT II ASSIGNMENTS 1 Unit II Assignments Student Name: Institution Affiliation: Date: UNIT II ASSIGNMENTS 2 Question 1: The factor endowment refers to the amount of money, labor, entrepreneurship, and land that a nation can exploit for manufacturing (Quang, 2013). The nations that have large factor endowments are economically comfortable than the others. In the case study, the capital-labor ratio of the manufacturing goods is ¼ while that of the agricultural goods is 1/8 hence ¼ is larger than 1/8 making manufacturing goods relatively capital intensive. The labor-capital ratio of manufacturing is 4/1 while that of the agricultural goods is 8/1 hence making the agricultural goods relatively labor intensive. The capital-labor ratio of Germany is 1/5 while that of Italy is 1/6. This makes Germany capital abundant. A capital-abundant nation is known to export the capital-intensive good, while the labor-intensive are exported by the nation that is good labor-abundant. Germany is capital abundant in this case. Hence, it will export the manufacturing goods that are capital-intensive. The labor-capital ratio of Germany is 5/1 while that of Italy is 6/1 making Italy labor abundant. Italy will export the agricultural goods in this case. Primarily, when the nations are not trading, the capital-intensive good prices in the countries that are capital-abundant will relatively be bid to the price of the commodity in the other nation. The labor-intensive good prices in ...
Purchase document to see full attachment

Tags: @work @cited