Briefly discuss why factors of production move internationally. Do you think it is wise for factors of production to move? Do you think with the movement of these factors it will increase or decrease exports and imports? Why, or why not?© BrainMass Inc. brainmass.com October 10, 2019, 8:14 am ad1c9bdddf
Factors of production are all of the inputs used to produce goods and services [while in the search for economic profit]. These factors are land, labor, capital, and entrepreneurial ability/entrepreneurship.
Imports are products sold in a domestic market from a foreign market. Exports are products being sent for sale from the domestic market into a foreign market. The determining factor on whether imports and exports increase or decrease is dependent on world price. If world price is higher than domestic price, the domestic market will export the good in question. The domestic market will then face the higher world price, but the benefits to the producers outweighs the losses to the consumers ...
This answer addresses the possibility of international movement in factors of production and the outcomes on imports and exports.