1.

1 Thoeretical Background

An economic theory in which traces what sort of continuous economic progress rate will

likely be done while using the correct levels of the actual 3 driving forces: labor, capital and

technology. The theory demonstrates in which by means of various the actual levels of labor and

capital from the production function, a balance state could be done. When a new technology gets

accessible, the actual labor and capital need to be adjusted to maintain growth equilibrium.

Neo-Classical trade theory says that free of charge import and export show that there' no

requirement regarding international flows involving capital along with labor to get factor price

equalization.