We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

International Economics - Essay Example

Comments (0) Cite this document
Name: Instructor: Course: Date: International Economics Question 1 1The carpet production process in India is largely reliant on labor rather than capital. Resource endowments in India’s carpet production center primarily around social capital rather than technology and financial capital…
Download full paper
International Economics
Read TextPreview

Extract of sample
International Economics

Download file to see previous pages... Social and cultural characteristics also impact the production techniques since the stock of trust among Indians facilitates the maintenance of socially held knowledge that, in turn, allows the social organization of the economic activity of carpet making. In India, values, ideas, human relationships and knowledge of carpet making are transmitted from one generation to another as part of the robust Indian culture. Conversely, the carpet production process in the US is characterized by mechanization of most processes. 2This allows for large-scale production as a single carpet producer uses massive amounts of fiber each day. Resource endowment, in the US, includes massive amounts of financial and intellectual capital, high entrepreneurship and robust technologies. Additionally, income levels are relatively large, enabling entrepreneurship and the establishment of huge companies that churn out massive quantities of carpets throughout the year. Essentially, resource endowment, in the US, including land, capital, labor and entrepreneurship, is quite prosperous. Social and cultural characteristics of the US that impact carpet production include an appreciation for formal training and education, which results in highly skilled and specialized human capital essential for the production process. Question 2 Carpet production is one of India’s oldest industries, dating back to the Mughal Dynasty. However, carpet production centers on the individualistic skills and knowledge of a weaver rather than collective appreciation of carpet making acquired through formal education and training. Due to immediacy to furnishing product, several carpet manufacturing centers have developed across the country. Carpets produced in India are mostly exported since the Indian market for carpets is quite small as a result of the low purchasing capacity of local players. Presently, India’s carpet export is worth Rs.2600 crores while the local market size is approximately Rs.200 crores. 3The industry has high growth potential as exports increased by 42.23% between 2004 and 2007. 4However, the industry is marred by challenges such as poor market channels, resulting in ignorance within the Indian market. 5On the other hand, the carpet industry in the US is highly developed. The industry shipped 1.969 billion square yards of carpet, in 2003; this was worth approximately $12 billion. Carpet shipments increased to 2.3 billion yards in 2004, demonstrating the massive potential inherent in the US carpet production industry. Presently, the US meets at least 45% of the world’s carpet needs. 6The US carpet industry is characterized by innovations and technological advances that allow for large-scale production of highly-priced goods. Technological progress is one of the primary reasons behind massive growth in the US carpet industry. The US carpet industry is highly organized, allowing for sufficient knowledge in the domestic market. 7 As a consequence, the US effectively meets at least 90% of its domestic carpet needs. Question 3 Latent demand for carpets in the USA pushes the country to become a primary importer of carpet despite being an efficient carpet producer. This is because carpet production, in the US, has been unable to offer complete satisfaction to all domestic needs and wants, resulting in a gap between what is available and desirable. The local US market has a high desirability for hand woven, Indian carpets, which are considered stylish and sophisticated. Conversely, ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“International Economics Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1485662-international-economics
(International Economics Essay Example | Topics and Well Written Essays - 1250 Words)
“International Economics Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/macro-microeconomics/1485662-international-economics.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
International Economics Eurozone
There are a number of conditions that should be available for the occurrence of intraindustry trade. The most important condition is that there should be some level of comparative advantage for intraindustry to occur. Research studies indicate that intra-industry occurs mainly because there is product differentiation and that a particular economy is in a position to produce goods of high quality compared to others (Helpman & Krugman, 2005, p.
4 Pages(1000 words)Essay
International Economics
This implies that service sector is not contributing proportionate to its share in the international trade in GDP of each country. Large amount of services are consumed domestically and not traded internationally. (International Trade…) Same is true for U.S.
3 Pages(750 words)Essay
International economics
44). Once it is expressed, there is no assurance how it is utilized and manipulated (Salvatore 2013, p. 46). To organize this illicit use of expertise several laws like copyright laws, exclusive rights laws e.t.c were outlined all around the globe (Salvatore 2013, p.
4 Pages(1000 words)Essay
International Economics
Ricardo compared two goods which is wine and cloth which were produced in Portugal and England, in his study he discovered that Portugal had absolute advantage on the production of both cloth and wine but the two countries would still gain from trading where Portugal will olny produce that product which it is more efficient in production and which it has more comparative advantage while England would produce the other good.
8 Pages(2000 words)Essay
International Economics
Due to the rapid improvements on communications technology, economic freedom and the continuous promotion of trade liberalization (World Trade Organization, 2008), modern business trend has gradually shifted from multinationalism to globalization. Other than the
17 Pages(4250 words)Essay
International Economics
Certainly, there are different factors and other economic activities that need to be understood in order to see deeply the concept of competitiveness. Understanding the concept of competitiveness means one must be able to consider at what point of view it has to be
17 Pages(4250 words)Essay
International Economics,
In free trade, there is no tariff, factor movement and policy harmonization. Without any import duty or any other tax, trading is undertaken. In case of Economic union, there is a presence of everything:
4 Pages(1000 words)Essay
International economics
While absolute advantage gives a nation an almost monopoly power over certain goods and services, comparative advantage ensures quality goods readily affordable at low price. According to Ricardo, economic
25 Pages(6250 words)Essay
International economics
The country has been importing as well as exporting multiple commodities to and from other neighbouring nations with the prime intention of sufficing the
10 Pages(2500 words)Essay
International economics
Based on some opinions, Russia under Putin can now be equated to Spain in terms of economic weight. Previously the globes eighth biggest economy, Russia lost its ranking since the economy shrank in only
10 Pages(2500 words)Essay
Let us find you another Essay on topic International Economics for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us