Q.1: State and explain the concepts of factor abundance and factor intensity. (2 points) Factor abundance is
Question:
Q.1: State and explain the concepts of factor abundance and factor intensity. (2 points)
Factor abundance is a bilateral concept in factor proportions trade theory that has no definition when there are many countries and various factors of production. The present paper proposes a general definition, the Euclidean distance to the intersection of abundance rays with unit hyperplanes. Distance factor abundance is compared with other measures using a data set from the literature.
Q. 2: Using the concepts above, state the Heckscher-Ohlin Theorem and explain its meaning in realistic terms. (2 points)
Q. 3: How is Heckscher-Ohlin Theorem different from Ricardian argument for international trade? (3 points)
Q. 4: State and explain the meaning of three assumptions that are needed to make Heckscher-Ohlin Theorem and are different from Ricardian Theory of Comparative Advantage. (3 points)
Database Systems A Practical Approach to Design Implementation and Management
ISBN: 978-0132943260
6th Edition Global
Authors: Thomas Connolly, Carolyn Begg