The Shipbreakers of Alang Represent a Perfect Example of How

question 11

Multiple Choice

The Shipbreakers of Alang represent a perfect example of how a developing country can apply the principles of the Heckscher- Ohlin model,since

• A)shipbreaking is a capital- intensive operation elsewhere in the world,and therefore represents a case of a factor intensity reversal.
• B)shipbreaking is generally considered to be a capital- intensive operation and India,being a large country has much capital.
• C)shipbreaking is a labor- intensive operation in India,and India's availability of capital per worker is less than that of its trade partners.
• D)India's climate lends itself to the work involved in shipbreaking.
• E)shipbreaking is a labor- intensive operation in India,and India has many workers since it is such a large country.

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Definitions:

Labor Costs

The total expenses that a company incurs due to the employment of staff, including wages, benefits, and taxes.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate overhead costs to products or services, calculated before the accounting period begins.

Machine Hours

A measure of the total running time of machinery used in production over a specific period, often used to allocate costs based on machine usage.

Job Cost Sheets

Documents that track the materials, labor, and manufacturing overhead costs incurred for a specific job in a cost accounting system.