The key assumptions for the H-O theory to work are: (1)perfect immobility of factors of production among countries; and (2)_____.

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The Heckscher-Ohlin (H-O) theory assumes perfect competition in markets, including the workplace, alongside the assumption of factor immobility among countries. This ensures that differences in factor endowments between countries drive the comparative advantage and trade patterns.

The Key Assumptions for the H-O Theory to Work Are