Q.Write a short note on exchange rate.

The most mobile factor of production in present-day international trade is capital — option (b).

Factors of production differ greatly in their mobility across national boundaries:

• Land is completely immobile.
• Labour is restricted by immigration laws, language and cultural barriers, so it is relatively immobile internationally.
• Entrepreneurship moves only to a limited extent. …

The correct option is (A) Capital, the most internationally mobile factor today.

Factors of production differ in how easily they move between countries. Land is completely immobile, and labour and entrepreneurship face restrictions such as visas, language, culture and skill recognition. Capital, however, flows quickly across borders through foreign investment, banking and financial markets, so in modern i …

Capital is the most mobile factor in international trade.

Factors of production differ in how easily they cross national boundaries. Land is completely immobile. Labour is only partly mobile internationally because of immigration laws, language, customs and social barriers. Capital, however, moves relatively freely across countries in the form of foreign investment, loans and financial …