Foreıgn Trade Deneme Sınavı Sorusu #1392043

The situation in which a commodity is the labor-intensive commodity in the labor-abundant country and the capital-intensive commodity in the capital abundant country is called:


Magnification effect.

Constant returns to scale.

Leontief paradox.

Factor-intensity reversal.

Elasticity of substitution of factors of production.


Yanıt Açıklaması:

Factor-Intensity Reversal explains the situation in which a commodity is the labor-intensive commodity in the labor-abundant country and the capital-intensive commodity in the capital abundant country.The Factor-Intensity Reversal rests on the elasticity of substitution of factors of production. 

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