Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In shipbuilding there are two types of ships. Producing basic bulk-carrying ships is labor intensive. Production of complex ships, including the largest container ships and

In shipbuilding there are two types of ships. Producing basic bulk-carrying ships is labor intensive. Production of complex ships, including the largest container ships and very deepwater oil-drilling ships, depends more on technical skills and design capabilities. Both China and South Korea have large shipbuilding industries. China's factor endowments are shown inFigure 5.3, of our textbok and comparable data for South Korea, reading across the columns, are 1.8%, 2.6%, 0.7%, 0.1%, 0.1%, 0.0%, and 0.2%. If China exports mostly basic bulk-carrying ships and South Korea exports mostly complex ships, is this pattern consistent with the Heckscher-Ohlin theory? How would changes in the long run, or coming from new techology adaption is one of the two or both sectors ( basic bulk carrying and more complex ships), or new environmental requirements, might effect your given endowment analysis of the two countries ( China and South Korea) ?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics And The Environment A Materials Balance Approach

Authors: Allen V Kneese, Robert U Ayres, Ralph C D'Arge

1st Edition

1317402251, 9781317402251

More Books

Students also viewed these Economics questions

Question

Behaviour: What am I doing?

Answered: 1 week ago