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Factor Endowment

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Factor Endowment
The means of production (namely land, labor, capital and sometimes entrepreneurship) contained in an area. In general, greater factor endowment portends greater economic success. However, some resource-poor countries and regions become successful simply by efficient use of the little factor endowment they have.


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The peculiar factor endowment of the Middle East -- which is rich in oil and poor in water -- makes international trade an indispensable factor in the growth and economic development of the region and simultaneously makes the countries highly vulnerable to the cyclical pattern of world trade movements.
The peculiar factor endowment of the Middle East -- which is rich in oil and poor in water -- makes international trade an indispensable factor in the growth and economic development of the region and simultaneously makes the countries highly vulnerable to the cyclical pattern of world trade movements.
Modern mainstream literature on international trade developed trade models on the basis of the assumptions of perfect competition in product as well as factor markets, constant returns to scale technology, factor endowment differentials and dealt with the questions concerning the effect of exogenous or policy changes on the real income (aggregate) level and alternative rankings of policy instruments i.
 
 
 
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