StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Capital Goods - Essay Example

Comments (0) Cite this document
Summary
In the essay “Capital Goods” the author discusses the issue that because capital goods require more factors of production they can be sold for a larger profit, thus increasing the PFF to outside of its boundaries. On the other hand, consumer goods do not require the same amount of input…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
Capital Goods
Read TextPreview

Extract of sample "Capital Goods"

The reason why countries such as Costa Rica and Bangladesh are better placed to produce shirts and then export them to the United States is because of their competitive advantage, not absolute advantage. Let’s use Vietnam as an example. The wages that have to be paid to Vietnamese workers are far less than those that would be expected by American workers. This means that it is better for America to import goods such as shirts from third-world countries because it can be produced far cheaper. Even with the added costs of transportation, this option is still better than America producing the goods domestically. So even though the United States has an absolute advantage in almost every good, it makes logical sense for them to outsource work that can be done cheaper somewhere else.
3) The reason why countries such as China and India use manual laborers is that it is cost-effective to do this in those countries. Also, these countries may not have the same technological expertise to produce machines to do the work for them. Even if this is the case, the average wage is so low that it does not cost very much to pay for human workers. On the other hand, in the United States, the minimum wage is so great that is would be too expensive to have to pay individual laborers to perform the work. Also, the United States is a technologically advanced country and can thus produce street cleaning machines to do the work. The total cost of making and using these machines is probably less than what it would be to have to pay manual laborers; thus it makes sense to use heavy street cleaning machines.
4) The reason why there is so much opposition to international trade is that some people argue that it hurts the local economy because of the loss of jobs for home workers. While international trade can be a good thing for the economy as a whole, it may not be so great for the individual worker who gets laid off. The reason why a worker may lose their job is that there will always be someone who can perform the same job for cheaper wages somewhere in the world. This inevitably leads to a higher unemployment rate in the home country. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Capital Goods Essay Example | Topics and Well Written Essays - 500 words, n.d.)
Capital Goods Essay Example | Topics and Well Written Essays - 500 words. https://studentshare.org/macro-microeconomics/1579537-micro
(Capital Goods Essay Example | Topics and Well Written Essays - 500 Words)
Capital Goods Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/macro-microeconomics/1579537-micro.
“Capital Goods Essay Example | Topics and Well Written Essays - 500 Words”. https://studentshare.org/macro-microeconomics/1579537-micro.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Capital Goods

Goods Design

...Capital Goods... Capital Goods... Research Paper Assignment 1. Donald Norman changed his mind Engineering and science are based on experimentation and collection of empirical data that are transformed into final products place in the market. Feasibility and usability of the product is considered in developing final products (Norman, 2007). Traditionally scientist hold that any idea or designed and success in the market could be traced back to its cognitive ability and scientific concepts incorporated in its production. Weak products fail while stable designs are successful in the market (Norman, 2007). Donald Norman moved away from mainstream scientific thinking by transforming his quest for enhancement of life. His streams of thoughts analyze an ...
10 Pages(2500 words)Research Paper

Locally Produced Goods Versus Imported Goods

...Capital Goods... Capital Goods... Produced Goods Vs Imported Goods Table of content Executive summary Introduction The economic side The social side The geographic side Cultural side Environmental side Health side Conclusion References Executive summary Modern days have seen the transportation and use of goods irrespective of their geographical locations. This trend is most of the time attributed to the freedom of mobility as a result of globalization and technological advancements. Thus, sometimes, goods which are imported become cheaper and of better quality than the locally produced ones. Along with this trend, there arises the controversy whether it is right to give priority to imported goods over th...
10 Pages(2500 words)Essay

Preference goods

...Capital Goods... Capital Goods... Introduction a. Rationale or background of the study The European Union conducts different researches on many different topics especiallyon issues that influence Europe in particular. It is clear that internet is one of the most important aspects in European economy and it continues to influence Europe in general. In today’s market, consumers buy increasingly more products on the internet and retailers are developing online activities to aim at consumers. For instance, customers can buy online at ebay and other online shopping centers on the web. This increases the possibility for retailers to influence buying behaviors of consumers. In line with this, it is important to understand further the buying behaviors of ...
20 Pages(5000 words)Dissertation

Cultural Capital and Social Capital

...Capital Goods... Capital Goods... Cultural Capital and Social Capital? Theories Cultural Capital and Social Capital? Theories Bowles and Gintis (2002) maintain that, both cultural and social capitals are important aspect within the field of sociology. Social capital is defined as a sociological concept, which relates to connection between and within social networks. Usually, this concept widely outlines the role of confidence and cooperation as well as social relation to get economic and collective results. Further, the notion created in social capital is useful in debating about civil society, which is considered central to the arguments created by Robert Putnam and all other who are in the forefront of reclaiming public life. On the other hand, ...
9 Pages(2250 words)Essay

Capital

...Capital Goods... Capital Goods... if any, are the mistakes in proposal Correcting for any mistakes produce revised estimates of the company's current cost of capital and currentvalue. Brief explanation of the reasons for any revisions should be included. Hussey (1999) defined capital gearing as the relationship between the funds provided by the ordinary shareholders and the long-term funds with fixed interest charge. Companies are highly geared when the fixed charges are substantially higher than the competition. Gearing is speculative and expected to provide benefits for shareholders when the firms are performing well. The concept of gearing has always been linked with uncertainties. The results of the strategy are dependent of the performance o...
14 Pages(3500 words)Essay

Consumers goods

...Capital Goods... Capital Goods... Goods Report Based on the Annual Report of GKN (2005) the company is using the Option Pricing Model as its model in calculating the target price. First, it was reported that the Earnings per Share (EPS) was computed at 7.7 in 2005. The EPS is actually the net profit after tax divided by the outstanding shares of the company. On the other hand, adjustments made in the financial report showed substantial reports. The value of EPS was subsequently changed to 22.1 after the adjustments were made. This is good news for the investors because the each share earned an additional 14.4 Sterling Pounds. According to the report, the change was made because of the impact of the restructuring and impairment charges, profits on ...
12 Pages(3000 words)Essay

Capital Budgeting - Capital investment appraisal

...Capital Goods... Investment Appraisal a) Machine A Present Value Purchase Price (1570000) Working Capital (47000) Running cost (151671) Overhaul Cost (73494) Disposal Cost (51072) Labor Cost Saved 2823414 WC Released 21432 Net Present Value £ 951609 b) Report to the Managing Director:- After carefully combining all the information provided by salesmen and management accountant, I have performed an NPV analysis of the both proposed project’s cash flows. Results have shown that NPV of Machine B is 80% greater than NPV of machine A. So, Temple Ltd. should install Machine B for more effective automation process and to reduce its production costs and operate much more cheaply. ...
1 Pages(250 words)Speech or Presentation

Capital

...Capital Goods... Capital Goods... The global economic development has slowed down in the recent months in Anxiety regarding the banking and fiscal problems in the Euro segment is increasing the pressure on the global economy. The recent data suggests that the economic activities have contracted in Europe. While the US economy is estimated to have a modest growth, in Asia the growth seems to be sluggish. However, China is showing signs of sustainable and steady economic growth at 7-8 percent (Reserve Bank of Australia, 2012a). So analyzing the global economic scenario, it can be said that the growth rate at the end of 2012 is expected to be around 3.5 percent, which might pick up to 4 percent at the beginning of 2013. The prices of the Australian...
6 Pages(1500 words)Essay

Public Goods

...Capital Goods... Capital Goods... Public goods An Impure public good refers to a kind of good that is partially rivalrous and whose consumption reducesthe utility level of another person but does not undermine the benefits that the other people will receive as a result of consuming the same good. Impure public goods refer to goods such as recreational facilities like parks and children public playgrounds. Impure public goods are always excludable meaning that their accessibility is somewhat controlled by the relevant authorities which has however been controversial because it compromises the ethical setting the public good is meant for (Arriagada & Perrings 803). Public good in general takes the form that it can be consumed by every individual in ...
4 Pages(1000 words)Essay

Public goods

...Capital Goods... Capital Goods... best strategy to offer quality Education Introduction The education quality in U.S. has depreciated over the years due to the strategy imposed by the government. Education is the primary step of any economy to ensure that the youths gain the needed knowledge and skills to improve the economy. Youths should learn to be more responsible thus; schools organization should be in a way that it will promote these objectives (United States Congressional Serial Set, 2011). The structure currently in use has failed to acquire these objectives. The government provides education as a public good to ensure that it is available to every child in the country. The democrats who urge the government to ensure that there is...
4 Pages(1000 words)Essay
sponsored ads
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.

Let us find you another Essay on topic Capital Goods for FREE!

Contact Us