Olivia believes that the employees in her company require constant supervision and are not naturally motivated. She believes she
2 answers:
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Answer: The answer is as follows:
Explanation:
From the given information,
Japan:
There are 50 workers and 50 acres of land
so,
Worker-land ratio =
=
= 1
Land-Worker ratio =
=
= 1
US:
There are 100 workers and 200 acres of land
so,
Worker-land ratio =
=
= 0.5
Land-Worker ratio =
=
= 2
From the above calculations of worker to land ratio and land to worker ratio of these two countries.
We conclude that Land-worker ratio in US is greater than that in Japan. So, US is land abundant country. Whereas Worker-land ratio in Japan is greater than that in US. So, Japan is Worker abundant country.
According to the H-O theory, a country exports the commodity whose production requires the intensive use of the country's relatively abundant factor.
It was given that rice is land intensive means that its production requires more of land than worker.
Once countries opens up the trade then,
US exports rice whose production requires the intensive use of land that is the country's relatively abundant factor. On the other hand, Japan exports cloth whose production requires the intensive use of worker that is the country's relatively abundant factor.