Consider the current situation: like their counterparts in the United States, engineers and technicians in India have the capacity to provide both computer programming and innovative new technologies. Indian programmers and high-tech engineers earn one-quarter of what their counterparts earn in the United States. Consequently, India is able to do both jobs at a lower dollar cost than the United States: India has an absolute advantage in both. In other words, it can produce a unit of programming for fewer dollars than the United States, and it can also produce a unit of technology innovation for fewer dollars. Does that mean that the United States will lose not only programming jobs but innovation technology jobs, too? Does that mean that our standard of living will fall if the United States and India engage in international trade?
David Ricardo would have answered no to both questions –as we do today. While India may have an absolute advantage in both activities, that fact is irrelevant in determining what India or the United States will produce. India has a comparative advantage in doing programming in part because such activity requires little physical capital. The flip side is that the United States has a comparative advantage in technology innovation partly because it is relatively easy to obtain capital in this country to undertake such long-run projects. The result is that Indian programmers will do more and more of what U.S. programmers have been doing in the past. In contract, American firms will shift to more and more innovation. The United States will specialize in technology innovation; India will specialize in programming. The business managers in each country will opt to specialize in activities in which they have a comparative advantage. As in the past, the U.S. economy will continue to concentrate on what are called the “most best” activities.
In contrast to United States, India has the ability to perform both programming and innovation technologies at lower amount which comprises of absolute pros, but lack of fund available in technology can lead India behind as compared to United States, however, United States economy will continue to rise as they focus on innovation rather than programming and the business managers in each country will be responsible to prioritize the activities which depends on the benefits.
It is shown that India is more advanced than US on the basis of numbers of engineers,technicians and low rate working criteria for its physical capital, alternatively, US is specialized in technological innovation so concentration is needed to continue for most best activities.
India has both advantages of programming and innovative new technologies for its low dollar cost condition which is absent in US because US works only for the technology innovation so it is not a matter to debate instead of focusing on most-best activities.
Indian programmers and high-tech engineers earn one-quarter of what their counterparts earn in the United States and therefore, the business managers in each country will pot to specialize in activities in which they have a comparative advantage and therefore, the U.S. economy will continue to concentrate on what are celled the “most best” activities.
With the multi disciplinary activities done by the people of india in programming and hightech jobs. It is questioned by the people from other countries that if integration of united states and india happens then it is assumed there would face loss of jobs and standards perhaps fail .David Ricardo came up with the complete answer as No by providing valid reasons.
Although it looks like Indian programmers currently have an advantage because they produce more code per dollar compared to the American counterpart, in the long run, this becomes a steady state due to the capital that the American market is capable of investing in innovations; therefore, India will continue to specialize on programming.
Engineers from India have the capacity to provide both computer programming and innovative new technologies with less earning compared to their counterparts in the United States, Though, India may have an absolute advantage in both activities, but, India involves in doing programming as it requires little physical capital and United States has advantage in technology innovation since it is easy to obtain capital to undertake long-run projects in United States.
After analysing the key aspects, it can be concluded that both American engineers and Indian technicians have the capacity to provide both computer programming and innovative new technologies, but Indian technicians ate able to do both jobs at a lower dollars cost than American engineers, which is considered the main advantage for India, and it can produce a unit of programming for fewer dollars than the United States.
Currently the United States and India are working in partnership to provide computer programmes and advanced technologies, although Indians received lower income compared to the USA, but they produce a unit of programming for cheaper cost with numerous advantages, while as the USA has comparative advantage in innovation technology, therefore, both countries will opt to specialize in activities with a comparative advantages.
Due to cheap resources India has more competitive advantage compared to US, however innovation of new technologies still lies with US as United states being rich can afford more investment in innovative projects.
The United States has a comparative advantage in technology innovation due to the availability of capital, whereas India specializes in computer programming and innovative new technologies with cheap labour; however, both the countries should opt to excel in those activities in which they have future economic benefits.
Despite having the potential to provide computer programming , innovative technologies, Indian computer professionals can only focus and foster the programming part whereas US can gain expertise in technology innovation attributed to its robust economy.
Currently, Indian engineers and technicians are equally capable of the United States, and lead to several questions including the United States losing innovation jobs, standard of living will fall; however, David Ricardo answered both the questions saying India would get the absolute advantages in both activities and The United States continue specilize in technology innovation.
India has advantage over United States as developing innovative new technologies and computer programming at cost approx 25% in comparison to their counter parts in United States, however this has benefited United States also and help them to concentrate on technology innovation wherein more capital is involved and concentrate on most best activities.
From the paragraphs its quite evident that the people working in United States are paid more than compared to the people working in India. So the programming jobs are shifting to India while the technology and innovation jobs are more retained in United States. For the question David Ricardo answers well by saying India is capable of doing programming work while United states does invest in innovation
Engineers and technicians in India have the capacity to provide both computer programming and innovative new technologies; although India is able to do both jobs at a lower dollar cost than United States; even thought the flip side is that United States has a comparative advantage in technology innovation partly because it is relatively physical in his country to undertake such long-run projects; so the United State will specialize in technology innovation.
Engineers and technicians in India are capable of both computer programming and innovative new technologies; Moreover, India is able to do these jobs at much lower cost than United States but it is not the matter of concern in terms of both jobs and international trade; additionally, United States has advantage in tech innovation while India leans towards programming and both the countries will opt for activities in which they specialize.
The United States will specialise in technology innovation whereas India will specialise in programming; thus business managers in each country will opt to specialise in activities in which they have a comparative advantage.
Base on the text, its talks about the united states and india how its works on the computer technologies in both country which they got in innovation and programming to obtain the capital in country to runs projects while its help to specialize in comparative advantages to both country.
Indian programmers and high-tech engineers earn one-quarter of what their counterparts earn in the united states, and the flip side is that the united stated has a comparative advantage in technology innovation partly because it is relatively easy to obtain capital in this country to undertake such long-run projects.
In contrast to united states, India has advantage of both engineers and technicinas ,yet each country will likely to be involved in the field they have more advantage of.
United States which is expert in technology innovation and India which requires less investment both have the capacity to provide both computer programming and elite technologies; however its not possible to decided what each country will produce.
India has an absolute advantage in both computer programming and innovative new technologies, and it can produce a unit of programming for fewer dollars than the United States, moreover, the United States will lose not only programming jobs but innovation technology jobs too, furthermore, that out standard of living will fall if the United States and India engage in international trad.
Although, India is capable of producing a unit of programming and a unit of technology innovation for fewer dollars as high tech engineers very less as compared to their counterparts earn in United States, but Indian programmers will do the work which U.S programmers were doing in the past at lesser cost, and thus, American firm will shift more and more innovation by obtaining capital in the U.S. to undertake such long – run projects.
Recently, Indian engineers and technicians engage in job with fewer dollars than United States, David Ricardo’s research show that the India may have concrete benefits on both programming and innovation while United State mainly focus on technology innovation, as a result U.S economy will continue on the ‘most best’ activities.
Engineers and technicians in India can do both programming and innovation in less dollars as compared to United States however, even if these countries start trading, our living standard won’t fall as India will still be doing same programming whereas United States will be innovating in technology.
There is a concern for the United State that it can lose programming jobs and innovation technology jobs, unlike India, which can provide both computer programming and innovative new technologies , but both countries have a comparative advantage in programming as the US is relatively easy to obtain capital and the India activity requires little physical capital , and the result is that US will specialize in technology innovation and India will do in programming.
Nowadays, India have the capacity to provide both computer programming, innovative new technology where Indian programmers and high technical engineers earn one quarter than United States; but America has a comparative advantage in technology innovation; moreover United States will specialize in technology innovation; but India will specialize in programming; hence economy will continue to concentrate on best activities.
There is competition between the United States and India in computer programming and innovative new technologies, whereas India has a comparative advantage in doing programming, and we find that the United States has a comparative advantage in technology innovation, though the business managers in each country will opt to specialize in activities in which they have a comparative advantage.
Although Indian programmers have the capacity to provide both computer programming and innovative new technology services, it will not affect related jobs and the living standard of American because programmers in the USA have a comparative advantage in technology innovation which will make Indian programmers focus on developing computer programming.