Question

"Factors in relative abundance are cheaper than factors in relative scarcity"- In light of this view, Demonstrate Ohlin's Factor-proportions theory Describe what economic factors influence the success of the international transportation and logistics Industry? Discuss the role and impact of the three predominant types of economic systems in 1. 2. 3. international business. Discuss- How emotional intervention rule the international business without having a strong economic logic. 4. Explain the four great waves of theoretical approaches in globalization. 5.

Answer 1

ANS 1: According to ohlin 's theory factors proportion theory one condition for trade is that countries differ with respect to the availability of the factors of the production.This theory is focus on the two most important factors of production that is :

(1):labor.

(2): capital.

factors relative means country having rich capital will export capital intensive commodity and the country having rich labor   will export labor intensive commodity.

ANS 2: The following are the factors which influences the success of international transportation and logistics industry are:

a: the separation of raw materials.

b: labor and production.

c:decline in tariffs.

d: import restriction and exchange rate controls.

e: increased demand for transport raw materials.

ANS 3: Three types of economics system are :

(1):command economic : In this government decides the answers of three basic questions i.e what will be made,how they will be made and who will get them.

(2): MARKET ECONOMY: In this consumers decide the answers of the three basic question . They will do by their choices of what to buys.No one tells companies what to make.US JAPAN AND GERMANY are all market economics,

(3): TRADITIONAL ECONOMIC: in this three question get answered by referring to tradition.

ANS 4: Emotional intervention is based on the sentiments , behaviors ,social-culture as well as relationship.that defines the economic rationale . it happen whenever leadership in MNC enterprises or in the government has futuristic expectations without any economic logic.

ANS (4): Four great wave of theoretical approaches in globalization are :

a:commodities

b:standards

c:specialties.

d convenience goods.