凭栏听雨
1. The conditions necessary for immiserizing growth.
(1) The country's growth must be biased toward the export sector.
(2) The foreign demand for the country's export must be price inelastic, so that an expansion in export supply leads to a large drop in price. (3) The country must already be heavily engaged in trade for the welfare meaning of the drop in the TOT to be great enough to offset the gains from being able to supply more. (4) It is a large country case.
2. (10) Describing the changes of the factor intensity during the product cycle.
As the product moves through its life cycle, the factor proportions will change in a systematic fashion.
1. The new-product stage depends on scientists, engineers, and other highly skilled labor. In this stage, production is technology-intensive rather than capital-intensive.
2. In the growth-product stage, the factor inputs shift from skilled to semiskilled labor, and from technology-intensive to capital- intensive.
3. In the third and forth stage, labor skills become relatively unimportant, and production becomes more capital-intensive or labor-intensive.
IV. Calculation.( totally 15 )
