The size of a nation's income depends upon the quantity and quality of the factor endowments at its disposal. A nation will be rich if its endowments of natural resources are large, its people are skilled and it has a useful accumulation of capital assets. The following points are of interest:
1. Natural resources
These include the minerals of the earth, the timber, shrubs and pasturage available; the agricultural potential (fertile soil, regular rainfall, temperature or tropical climate; the fauna and flora; the fish, crustacean among others of the rivers and sea; the energy resources including oil, gas, hydro-electric, geothermal, wind and wave power.
2. Human resources
A country is likely to prosper if it has a large population; literate and numerate sophisticated and knowledgeable about wealth creating processes. It should be well educated and skilled with a nice mixture of theory and practice. The human resource of a nation should show enterprise, being inventive, energetic and determined in the pursuit of a better standard of living.
3. Capital resources
A country must create and then conserve capital resources. This includes not only tools, plant, machinery, factories, mines, domestic dwellings, schools, colleges among others but also a widespread infrastructure of roads, railways, airports and ports. Transport creates the utility of space. It makes remote resources accessible and high-cost goods into low-cost goods by opening up remote areas and bringing them into production.
4. Self-sufficiency
A nation cannot enjoy a large national income if its citizens are not mainly self- supporting. If majority of the enterprises are foreign-owned there will be a withdrawal of wealth on the form of profits or goods transferred to the investing nation.
Dullayo answered the question on May 10, 2018 at 09:46
- Explain five factors which determine the productivity of labour(Solved)
Explain five factors which determine the productivity of labour.
Date posted: May 9, 2018. Answers (1)
- Briefly describe four theories used to determine wages of labourers(Solved)
Briefly describe four theories used to determine wages of labourers.
Date posted: May 9, 2018. Answers (1)
- Explain the reasons for studying International Economics(Solved)
Explain the reasons for studying International Economics
Date posted: May 9, 2018. Answers (1)
- Outline the assumptions of Economic Order Quantity (EOQ)(Solved)
Outline the assumptions of Economic Order Quantity (EOQ).
Date posted: May 8, 2018. Answers (1)
- Outline methods used to derive Economic Order Quantity (EOQ)(Solved)
Outline methods used to derive Economic Order Quantity (EOQ).
Date posted: May 8, 2018. Answers (1)
- Outline the types of inventory control system.(Solved)
Outline the types of inventory control system.
Date posted: May 8, 2018. Answers (1)
- Outline objectives of inventory control(Solved)
Outline objectives of inventory control
Date posted: May 8, 2018. Answers (1)
- Discuss the impact of agricultural activities on environmental degradation(Solved)
Discuss the impact of agricultural activities on environmental degradation.
Date posted: May 6, 2018. Answers (1)
- Discuss causes of market failure in environmental economics(Solved)
Discuss causes of market failure in environmental economics.
Date posted: May 6, 2018. Answers (1)
- Explain the reasons why commercial banks prefer to lend Short-term loans(Solved)
Explain the reasons why commercial banks prefer to lend Short-term loans.
Date posted: May 6, 2018. Answers (1)
- Discuss various goals of an economic policy(Solved)
Discuss various goals of an economic policy.
Date posted: May 6, 2018. Answers (1)
- State six uses of ratios(Solved)
State six uses of ratios
Date posted: May 3, 2018. Answers (1)
- Outline four critical issues which must be noted when carrying out trend and industrial analysis(Solved)
Outline four critical issues which must be noted when carrying out trend and industrial analysis
Date posted: May 3, 2018. Answers (1)
- Describe the classifications of financial ratios.(Solved)
Describe the classifications of financial ratios.
Date posted: May 3, 2018. Answers (1)
- Outline the two basic financial statements(Solved)
Outline the two basic financial statements
Date posted: May 3, 2018. Answers (1)
- Define the term financial statement analysis.(Solved)
Define the term financial statement analysis.
Date posted: May 3, 2018. Answers (1)
- Briefly describe Keynes four key contributions to the school of economics.(Solved)
Briefly describe Keynes four key contributions to the school of economics.
Date posted: May 1, 2018. Answers (1)
- Describe any four principles of combining enterprises in a product-product decision(s).(Solved)
Describe any four principles of combining enterprises in a product-product decision(s).
Date posted: May 1, 2018. Answers (1)
- Outline three conditions for the success of devaluation policy(Solved)
Outline three conditions for the success of devaluation policy
Date posted: May 1, 2018. Answers (1)
-
Outline the determinants of exchange rate in the long run(Solved)
Outline the determinants of exchange rate in the long run
Date posted: May 1, 2018. Answers (1)