Hey for the theory of ca i just realised i didnt really talk
about factor endowments, but about india govt subsidy which allow
them to produce agricultural products at relativrly lower cost of
production, hence lower opp cost in producing.. will i be
penalised?i wrote the limitations of ca in detail for anti
thesis
all the best for paper 2 tmr!
lol i think factor endowment is probably the only thing they are
looking for since Comparative advantages is always linked to factor
endowment.
Based on your argument, i can subsidise cars/trucks/anything,
not necessarily need to subsidize the agricultural products. But
for India. because of their factor endowment whether got subsidiy
or no subsidy also cannot produce capital intensive things based on
extract.
all the best and choose question wisely