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H ome Chegg.com Home Questions Assignments Discussions Grades People Pages Files Syllabus Quizzes Modules Course Video Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 8 2 pts Factor Endowments Time Elapsed Hide France 700 100 India 4000 2000 Attempt due: Sep 22 at 11:59pm Land Labor The table above shows factor endowments for France and India Which country is relatively land abundant? O India France Previous Next No new data to save. Last checked at 11:32am Submit Quiz 11:32 AM 9/21/2015

Explanation / Answer

We know that factor endowment means that the availability of factors. In Heckscher- Ohilin theory states that regions or countries differ from one another in respect of endowment.

Question 1

The land endowed country is india

Question 2

The comparitive adventage in producing paper is india

India have comparitive advetage both in the production of rice and paper. In the production of paper requires 8 units of land and 2 workers. So india have both land and labour abundant country.

Question 3

It will rise, india export paper

This is because the domestic supply will be reduced.

Question 4

According to Stolper- Samuelson, if the price of a product increase, returns to factor increase intensively in its prodction will increase, and if the price of a product decrease, returns to the factor used intensively in its production decrease.

In this example, the price of peper in france will decrease because France will Import paper. therefore returns to land will increase in France, and French landowners will favour trade with india.

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