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German patients may prefer to get eye surgery in an eye hospital in Istanbul because of attractive prices. According to the Kravis-Lipsey explanation, price of
German patients may prefer to get eye surgery in an eye hospital in Istanbul because of attractive prices. According to the Kravis-Lipsey explanation, price of medical services in Turkey are lower than those in Germany because: a) As the Heckscher-Ohlin Theory suggests, the abundance of labor in Turkey renders the relative price of the labor intensive medical services cheaper in Turkey. b) Because of the higher K/L ratio, the marginal productivity of labor in the overall German economy is higher than that in the Turkish Economy. Hence wages in Germany are higher than wages in Turkey c) Doctors are more skillful in Turkey and hence perform eye surgery in a shorter period of time. d) Both (a) and (b) e) Both (a) , (b) and (c)
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