Consider a Setting in Which Capital Is Mobile Between

question 23

Essay

Consider a setting in which capital is mobile between
sectors, but in the short run labor is divided into two
sector­specific types of labor (skilled and unskilled
labor).In Korea the education system is very intense,
with students attending tutoring sessions in addition to
their regular classes.In the United States the education
system is more relaxed, with students focusing on
sports and other activities after school.With this in
mind, which country better matches the specific­factors
model?

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Definitions:

Collateral Trust Bond

A type of bond that is secured by a pledge of collateral, typically securities, placed under the trust of a third party.

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives) that can be bought and sold in financial markets.

Equipment

Physical assets used in the operation of a business, including machinery, tools, and vehicles.

Floating-Rate Bonds

Bonds whose interest payments fluctuate with market interest rates.