.

             .

             Second, differences in government services and regulations can also result in different .

             comparative advantages. For example, nations with compulsory public education that develops .

             high literacy rates are likely to have more productive workers than countries in which many .

             workers receive less education. And nations with less regulation of pollution may have a .

             comparative advantage in "dirty " industries that produce high levels of pollution. (Deardorff).

             .

             Third, over time, a major source of comparative advantage comes from investments in .

             technology. One reason the United States has a comparative advantage in space exploration and .

             in manufacturing large commercial airplanes is because U.S. firms in these industries have .

             invested in state of the art production technologies. In some cases firms developed these .

             technologies due to government incentives or contracts, such as those associated with U.S. space .

             exploration and national defense programs. (Deardorff).

             Analyze the international movement of productive factors in order to identify business .

             opportunities and/or threats. We can safely say that the analysis of trade in goods and services .

             while no factors of production-labor, capital, or land move between countries. In the real world, .

             there are movements of capital called international capital flows- and movement of labor termer .

             migration-between countries. We can also go into the effects of allowing for movement of these .

             factors, we will add an important variant of capital movement that of foreign direct investment .

             abroad (FDI). .

             .

             Characteristic of modern industrial society in the world is not only free trade in goods and .

             services, but also the free movement of capital. In various regions around the world, and of .

             course the currency, together with a list of interest. The world's financial markets and capital .

             markets have an important impact on the financial and economic crisis in general, the .