Answer to Question #110951 in Economics for Trishtee

Question

how the supply of factors of production influences which goods and services are produced in different countries

Answer 1

If the supply of factors of production is higher in some particular country, it stands to reason that it can create more particular goods at a higher quality and perhaps a lower price. Any increase in production leads to economic growth as measured by Gross Domestic Product or GDP. So, if some contry has better supply of factors of production, then it may have a comparative advantage in producing some particular goods or services.