Tastes are assumed to be identical across countries to rule out differences in demand determining the direction of trade.

Name: Tastes are assumed to be identical across countries to rule out differences in demand determining the direction of trade.
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This assumption is part of the Heckscher-Ohlin model, which suggests that trade patterns are determined by differences in factor endowments rather than differences in consumer preferences.

Tastes Are Assumed to Be Identical Across Countries to Rule