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HECKSCHER-OHLIN MODEL: A model of international trade developed by Eli Heckscher and Bertil Ohlin, with significant contributions by Paul Samuelson, that relies on the notion that comparative advantage is based on relative natural resource endowments. A nation with large oil reserves will, for example, have a comparative advantage in oil production over another nation with fertile soil, which will have a comparative advantage in agricultural production.
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                           SERVICE: Activities that provide direct satisfaction of wants and needs without the production of tangible products or goods. Like the related term good, a service is produced using society's resources and represents a fundamental aspect of the economy. Limited resources are used to produce the services that satisfy unlimited wants and needs in an ongoing effort to address the problem of scarcity. While often delegated to second-class citizenship when attention turns to production, intangible services are as important to the modern economy as tangible goods. Services account for about half of all production for modern economies.A short list of commonly consumed services, such as health care, education, entertainment, and information illustrates this point. In each case, satisfaction is provided directly to a consumer. For example, Dr. Dowrimple T. Bedside advises patients on proper dietary techniques for losing weight. Alicia Hyfield, a dedicated college student, receives oodles of enlightenment each time she attends class. Thousands of Shady Valley spectators are regularly thrilled by the heroics of Harold "Hair Doo" Dueterman, baseball superstar. Winston Smythe Kennsington III, a wealthy investor, gains business insight by diligently watching the financial news channels on cable television. In none of these examples is satisfaction provided by the consumption of a tangible, physical product. An intangible service is doing the satisfying. Goods and ServicesIntangible services should be contrasted with a related concept, tangible goods. Goods are physical items used to provide satisfaction of wants and needs. In that wants and needs are satisfied with either tangible goods or intangible services, the phrase goods and services is commonly used to comprehensively capture all production in the economy. Terms like gross domestic product can be defined using the phrase the "...market value of all goods and services."Resource ServicesWhile the term services is commonly aimed at activities that directly satisfy human wants and needs (such as information, health care, and education), it is also used in reference to resource services, or the services of the factors of production. For example, when producers are said to buy labor, they are not actually buying labor, that is people. Instead, they are buying, or better yet hiring, the services of labor. This distinction is also important for capital resources. Although it is quite legal to buy capital, the analysis of production is primarily concerned with the services of capital. In fact, two different (but related) capital markets exist. One is for capital goods. The other is for capital services. It is best to distinguish between the physical capital and the productive services of this capital. Much the same can be said for land. The physical item of land is distinct from the services of land services used for production.
Recommended Citation:SERVICE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2023. [Accessed: March 30, 2023].
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Today, you are likely to spend a great deal of time searching the newspaper want ads trying to buy either a remote controlled train set or a genuine down-filled snow parka. Be on the lookout for gnomes hiding in cypress trees.
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Helping spur the U.S. industrial revolution, Thomas Edison patented nearly 1300 inventions, 300 of which came out of his Menlo Park "invention factory" during a four-year period.
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