Question

Suppose that Home has 20% of the world's capital, 10% of the world's skilled labor, and 30% of the world's unskilled labor and produces 20% of the world's GDP. What does this information suggest?

Answer 1

Answer and Explanation:

Home country has 20% of the world's capital , 10% of the world's skilled labor and 20% of the world's GDP. This means that the GDP of the home country is proportional to its capital possession. As GDP is more dependent on its capital input and less on labor input, home country can be said to be capital intensive