Question 1 ( Look at the table below. Physical Researchers Skilled Unskilled GDP Capital Labor Labor USA 25 26 27 2 20 China 10 17 8 18 15 Japan 12 11 5.8 2 6 India 4 3 6 30 5 Germany 8 6 3 1 4.5 In the table above each number represents a country's share in the world endowment of a factor production or GDP. For example, number 25 in the row for USA and the column for Physical Capital says that the US owns 25% of the world endowment of physical capital. Based on these numbers and your knowledge of the Heckscher-Ohlin model, answer the following questions. a) Which countries should be exporting the services of Physical capital? b) Which countries should be importing the services of Researchers? c) Which countries should be exporting the services of skilled labor? d) Which countries should be exporting the services of unskilled labor?

Question 1 ( Look at the table below. Physical Researchers Skilled Unskilled GDP Capital Labor Labor USA 25 26 27 2 20 China 10 17 8 18 15 Japan 12 11 5.8 2 6 India 4 3 6 30 5 Germany 8 6 3 1 4.5 In the table above each number represents a country's share in the world endowment of a factor production or GDP. For example, number 25 in the row for USA and the column for Physical Capital says that the US owns 25% of the world endowment of physical capital. Based on these numbers and your knowledge of the Heckscher-Ohlin model, answer the following questions. a) Which countries should be exporting the services of Physical capital? b) Which countries should be importing the services of Researchers? c) Which countries should be exporting the services of skilled labor? d) Which countries should be exporting the services of unskilled labor?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 25CTQ: Cross country comparisons of GDP per capita typically use purchasing power parity equivalent...

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