The assumption that the two goods are made using different factor intensities raises the likelihood of incomplete specialization after trade begins.
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Q18: According to the factor price equalization theorem,if
Q19: According to the factor price equalization theorem,the
Q20: According to the Heckscher-Ohlin (HO)model the source
Q21: In the HO model,the production possibility frontier
Q22: According to the Rybczynski theorem,if a country
Q24: Suppose that there are two factors,capital and
Q25: Tastes are assumed to be identical across
Q26: Which of the following is true?
A)In the
Q27: In the HO model,reciprocal demand leads to
Q28: Even if some people are hurt by
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