Download or read book International Capital Transfers and the Choice of Production Technique written by Susan I. Ranney and published by . This book was released on 1983 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: A two-country, two-factor, two-good world with incomplete specialization is explored in the context of international capital transfers, where the techniques of production of the same good differ between the two countries. It is shown that the terms of trade for the South will worsen with a capital transfer to the South under a wide range of assumptions about technology choice in the North, South, and North-owned sector of the South. The implied redistribution of world income, as well as the implications of a change in the production technique of the North-owned sector of the South are also examined.