International Economics Essay Example | Topics and Well Written Essays - 2000 words

International Economics - Essay Example According to this theory the two countries will gain from trade if each country specialises in the production of that good which it has a higher comparative advantage. We assume that the given numerical figures are the costs of labour in the production of good 1 and good 2 in both countries, from the above table it is clear that country A has absolute advantage in the production of both goods but according to the comparative advantage theory the two countries will still gain by trading From the analysis of the comparative advantage it is clear that despite country A having absolute advantage in the production of both goods it even more efficient in the production of good 1, for country B it is less disadvantaged in the production of good 2. for this reason country A will produce good 1 and country B will produce good 2 and they will gain from trading. Therefore trade will offer a country an opportunity to specialise and therefore countries will reallocate factors of production to those goods in which it has comparative advantage in and therefore gain in the process. Hecksher ohlin trade theory states that trade occurred due to factor endowment, factor endowment according to him meant that a country was either endowed with capital or labour, he stated that those countries that were rich in capital produced capital intensive goods while those that were rich in labour produced labour intensive goods. Capital intensive goods are those goods that require more units of capital per unit of production, while the labour intensive goods are those goods that require more units of labour per unit of production. Factor endowment therefore refers to the amount of resources has, however this theory was based on the assumptions that there were no transport costs, perfect competition in the commodity and factor market, only two goods are produced where one good is labour intensive while the other is capital intensive and the final assumption is that the production function differ

Marketing 4580 International Transportation Essay - 1

Marketing 4580 International Transportation - Essay Example Postconsumer recycled content are environmental friendly and a firm could use these materials in packaging. Another environmental friendly strategy that a firm could apply would be the reduction of packaging materials used and instead use just one material for packaging. In order to keep the cycle going the firm should also have an environmental friendly system to collect the materials used in packaging for recycling. The last effective strategy would be to use materials that could be under use again after cleaning like refillable beverage bottles. Logistics have been existent since civilization and it is both exciting and challenging. If the packaging inefficiency were under reduction, there would be a great ease because logistics deals with getting products wherever they are in need at the right time. This is only possible; by the way, the products are stored. The first principle that states that materials should be handled as less as possible surprises me most. I fail to understand the aim of handling materials without really handling them, but the results of this principle stand out for themselves. The other principle that surprises me is the principle of moving optimum units in one package. I would argue that it is more risky to move a huge number of goods in one unit due to risk of destruction and huge losses. In fragmented logistics, activities are under management in many different offices in an organization while in unified logistics as the name suggests multiple activities under execution in one department and managed as a single unit. Every participant in the network organization has their specific duty to carry out under their department. If everyone is doing their duty, then the agility of the whole system should be precise and accurate on timing and coordination. One principle of logistics is not to affect the production of the product. If a network is efficient the relevancy, responsiveness and flexibility is under