Land-intensive commodities include agricultural products such as corn and wheat. Labor-intensive commodities require much labor in...

  

Transcribed Image Text:

Land-intensive commodities include agricultural products such as corn and wheat. Labor-intensive commodities require much labor in production, such as transistor radios and clothing. Capital-intensive products are produced with a large amount of capital equipment and include manufactured items such as aircraft and automobiles. These distinctions are important because if a nation has an abundant supply of particular types of resources, it can produce items that are intensive in these resources with a comparative cost advantage. On the other hand, if it has a relative scarcity of certain resources, such as land, then it will be relatively expensive to produce land-intensive products such as corn and wheat. The difference in relative resource abundance among nations leads to a difference in comparative costs of production, which is the basis for international trade and specialization. Distinctive products - those associated with a particular country (perhaps because of a reputation for quality) - can provide an export niche for a country. Even though the country may have no cost advantage in producing the good, the "label" on the good is enough to attract buyers willing to pay more than for potentially comparable substitutes. 1. Identify an example of a land-intensive good that you believe the United States is well-suited to produce and explain why. (Please be specific.) 2. Identify an example of a labor-intensive good that you believe the United States is well-suited to produce and explain why. (Please be specific.) 3. Identify an example of a capital-intensive good that you believe the United States is well-suited to produce and explain why. (Please be specific.) Land-intensive commodities include agricultural products such as corn and wheat. Labor-intensive commodities require much labor in production, such as transistor radios and clothing. Capital-intensive products are produced with a large amount of capital equipment and include manufactured items such as aircraft and automobiles. These distinctions are important because if a nation has an abundant supply of particular types of resources, it can produce items that are intensive in these resources with a comparative cost advantage. On the other hand, if it has a relative scarcity of certain resources, such as land, then it will be relatively expensive to produce land-intensive products such as corn and wheat. The difference in relative resource abundance among nations leads to a difference in comparative costs of production, which is the basis for international trade and specialization. Distinctive products - those associated with a particular country (perhaps because of a reputation for quality) - can provide an export niche for a country. Even though the country may have no cost advantage in producing the good, the "label" on the good is enough to attract buyers willing to pay more than for potentially comparable substitutes. 1. Identify an example of a land-intensive good that you believe the United States is well-suited to produce and explain why. (Please be specific.) 2. Identify an example of a labor-intensive good that you believe the United States is well-suited to produce and explain why. (Please be specific.) 3. Identify an example of a capital-intensive good that you believe the United States is well-suited to produce and explain why. (Please be specific.)

Answer rating: 100% (QA)

Landintensive Laborintensive and Capitalintensive Goods in the US 1 Landintensive good Cotton Explan... View the full answer