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Discuss How Alternative Models Seek to Address Weaknesses in the Comparative

Question 26

Essay

Discuss how alternative models seek to address weaknesses in the comparative advantage model.
-Explain the need to go beyond the analysis of static comparative advantage according to modifications of the assumptions, paying particular attention to
a. Transportation costs
b. Factor proportions
c. Human capital and knowledge
d. Distribution of benefits and costs of trade
e. Economies of scale and monopolistic competition
f. The product cycle and industrial metamorphoses
g. Anomalous terms of trade between primary and manufactured goods

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