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

Capital Goods and Land, Labor, Capital, and Entrepreneurship - Essay Example

Cite this document
Summary
The paper "Capital Goods and Land, Labor, Capital, and Entrepreneurship" states that poorer countries that do not have access to higher education and technological input are more likely to focus on labor-intensive goods such as textiles and agriculture. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
Capital Goods and Land, Labor, Capital, and Entrepreneurship
Read Text Preview

Extract of sample "Capital Goods and Land, Labor, Capital, and Entrepreneurship"

1) If a country wants to expand its economy, then it needs to shift its focus away from the production of consumer goods and focus more on capital goods. This will result in an outward shift of the PPF curve.

2) 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 America should import goods such as shirts from third-world countries because they 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 it 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

CHECK THESE SAMPLES OF Capital Goods and Land, Labor, Capital, and Entrepreneurship

Entrepreneurship

Traditional factors that cause failure of small businesses include lack of capital and inadequate knowledge.... capital and labor are two significant factor of production since the enable production of economic goods and services.... Entrepreneurship involves undertaking, organizing and innovations that transform resources into useful goods and services.... entrepreneurship entrepreneurship is a major factor in micro economic since it links production of goods to the satisfaction of human wants....
4 Pages (1000 words) Research Paper

Enterprise and Entrepreneruship

12 Pages (3000 words) Essay

The differences of entrepreneurship in China and Japan

This paper will undertake an examination of the characteristic and circumstances of small and medium-sized enterprises, which embody entrepreneurship in both Japan and China with a view of understanding the unique characteristics in each and how they contrast with each other.... This paper will undertake an examination of the characteristic and circumstances of small and medium-sized enterprises, which embody entrepreneurship in both Japan and China with a view of understanding the unique characteristics in each and how they contrast with each other....
5 Pages (1250 words) Research Paper

Major Differences between Adam Smiths and David Ricardos Theories of International Trade

Ricardo also emphasized output, internal efficiency in industrial output, as well as entrepreneurship in the mustering of capital and resources for production.... In any case, Ricardo's main concern was not to develop a theory of international trade but to show how the distribution of income among various classes affected capital accumulation and growth.... ere the author laid out the idea of a law of diminishing returns as it applied to labor and capital....
9 Pages (2250 words) Term Paper

Factors that Contemporary Managers Must Consider When Estimating Production

It is the planet's naturally occurring materials that are used for the production of goods and services.... These factors are land including all natural resources; labour including all human skill and work; capital including all assets, machinery, money, raw materials among others; and entrepreneurial ability including inventiveness, management and organizational skills as well as the readiness to take risks.... rent, wages and interest for land, labour and capital respectively, and profit for the entrepreneur....
9 Pages (2250 words) Research Paper

The Affects of Labor Market on Supply and Demand

roduction of any goods is influenced by mainly labor and capital supply.... 26), sufficient capital outflow or capital investment increases specialist and divisional labor supply in a market.... "The Effects of labor Market on Supply and Demand" paper shows that all three factors are variable and that price is most volatile i.... Production rate changes frequently because of the labor market mainly i.... availability of efficient labor in that location....
7 Pages (1750 words) Coursework

How Can Inequality Undermine the Development of a Country

When there is a continued increase in output of goods and services, be it total or per capita, there is economic growth.... Proponents of social capital led by argued that; whenever there is a continued increase in output of goods and services there is economic growth (Castano 2007, website).... Castano (2007) studied the effects of social capital on economic growth through family, associations, informal links, links in places of work and the state....
7 Pages (1750 words) Case Study

Social Capital

The paper "Social capital" tells us about representation of the combined benefits of the society, which can be gained from the collaboration, cooperation and just treatment with the individuals living in the society.... Social capital indicates the processes and ways that helps in the reduction of interaction cost, strengthens social bond among the individuals, and helps in provision of the best alternatives for building moral and ethical human behavior base (Thomas, 1995)....
11 Pages (2750 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.
Contact Us