GEOG 216 Lecture Notes - Lecture 9: Factor Endowment, Canadian Prairies, Absolute Advantage
23 Nov 2017
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Geography of the world economy september 23rd. See heckscher-ohlin model shows a difference in factor endowments natural resources/raw materials one country has, other doesn"t. Canada has lots of fresh water, saudia arabia doesn"t. Prairie provinces (flat, makes it good for productivity for wheat) Canada has good level of specialization in fiber optics engineering, china on other hand has more readily available labour force for low cost goods. Canada trades fiber optics for goods produced in china. Availability of capital, or the technology required to produce different goods and services. Intra-industry or intra-firm trade (via globally integrated production activities) Trade and geography: agglomeration economies (economies of scale and slope). Certain types of high tech industries will cluster (silicon valley, Differences in factor endowments countries are advantaged (ie relatively more efficient) in the production of certain goods and disadvantaged (ie relatively less efficient in others. Think about example of usain bolt vs barack obama in sprinting and tennis.
