Question

Question 1

In the United States, where land is cheap, the ratio of land to labor used in cattle raising is

higher than that of land used in wheat growing. But in more crowded countries, where land is

expensive and labor is cheap, it is common to raise cows by using less land and more labor than

Americans use to grow wheat. Can we still say that raising cattle is land-intensive compared

with farming wheat? Why or why not?

Question 2

“The world’s poorest countries cannot find anything to export. There is no resource that is

abundant, certainly not capital or land, and in small poor nations not even labor is abundant.”

Discuss.

Question 3

The US labor movement - which mostly represents blue-collar workers rather than professionals

and highly educated workers - has traditionally favored limits on imports from less-affluent

countries. Is this a shortsighted policy or a rational one in view of the interests of union members?

How does the answer depend on the model of trade (compare the predictions from the Ricardian

and the Heckscher-Ohlin models of trade)?

Answer 1

1 )

solution :

Condition : 1  

where land is cheap in the united states,

The ratio of Land to Labour used in cattle raising is higher than that of land used in wheat growing means united states already states that cattle raising is more than growing of wheat production .In this case united states is differnt from many crowded countries , that is in other than united states land is expensive and the labour is cheap . so, the other countries not bother about the issue land and the labour. and the Land to labour ratio is purely based on the related price factors.

Yes , we can say that common to raise cows by using less land and more labour in otnher countries where labour available for cheap.

In kind of united states of countries less populated and resources are abundant that means land is available easily in the cattle raising condition but , in the case of growing wheat is not done because labour may not available as compared to land to labour ratio of cattle raising . it is very difficult to find out the land to labour ratio of Growing wheat.

2 )

predictions from the Ricardian

and the Heckscher-Ohlin models of trade:

In many theories the economists expressed their opinions countries should not competitive to export their products or services to the other countries .Many of the the countries which is having their resources in abundant are exporting to the world , but , Even though many of the poor countries utilzing their resiours in less and which they can export in the form of labour, services and others  to the world and Enjoying the additional advantages from the exported countries. many of the Devolped , Developing and poor countries also made these kind expots to the world eventhough it is not abundant.

EX: In less populated countries labour ratio is low, here we can serve and export for that country in the form online services.

3 )

predictions from the Ricardian

and the Heckscher-Ohlin models of trade:

From the predictions of Richardian opinions that Labour can benefits from the trade, when real wage increases. exporting trade has strong income distribution that means Trade changes the relative prices of the good and change in relative prices of goods can earn relative earnings from the resources . In united states labour is scare resource. so , we can say here countries which have abundant factors gain from trade otherwise must experience the losses. so, there is no rational behind the labour unions demand for limiting of importing from less affluent countries . the income returns of the blue collar workers are negatively effected by trade because us is labour scarity area , in point of heckscher - ohlin model of trade labour union in united states demand import limits . this may be fair for the trade in short run but, in long run trade face losses due to factors of production will overweigh in case of labour gains from the trade .so , we have to think avoid the losses in long run.

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