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The assumption of diminishing returns in the Heckscher-Ohlin model means that, unlike in the Ricardi

Chako

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8 years ago

The assumption of diminishing returns in the Heckscher-Ohlin model means that, unlike in the Ricardi

The assumption of diminishing returns in the Heckscher-Ohlin model means that, unlike in the Ricardian model, it is likely that
A) global production will decrease under trade.
B) countries will benefit from free international trade.
C) comparative advantage will not determine the direction of trade.
D) countries will consume outside their production possibility frontier.
E) countries will not be fully specialized in one product.

Textbook

International Economics: Theory and Policy

Edition: 10^th

Author: Krugman

Read 136 times

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machukian

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Chako Author

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8 years ago

Makes a lot of sense, and you're right.. I appreciate the input

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machukian

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8 years ago

Good luck

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