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thesis statement international trade

In contrast, capital-intensive products, e. Countries with large amounts of capital will export capital-intensive products and import labor-intensive products with the proceeds.

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Countries with high amounts of labor will do the reverse. The following conditions must be true: The major factors of production, namely labor and capital, are not international in the same proportion in trade theses.

The two goods produced either require more capital or more labor. Labor go here capital do not move between the two countries.

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There are no costs associated with transporting the goods between countries. The citizens of the two trading countries have the same needs. The theory does not depend on total amounts of capital or labor, but on the amounts per worker. Accounting Anthropology Architecture Art Astronomy Biology Business Chemistry. Criminology Economics Education English Finance Geography History Internet technologies.

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