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If Factor-Intensity Reversals Were Indeed Prevalent in the Real World

Question 16

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If factor-intensity reversals were indeed prevalent in the real world, how might this fact be used to explain the Leontief paradox? If this explained the paradox, would it suggest that any given U.S. trading partner stood a better chance of conforming to Heckscher-Ohlin than did the United States (i.e., will a factor intensity reversal yield "incorrect" H-O results for both countries)? Why or why not?

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Factor-intensity reversals refer to the ...

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