3. In practice, comparative advantage reflects differences between countries in climate, factor endowments, and technology. The HeckscherOhlin

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3. In practice, comparative advantage reflects differences between countries in climate, factor endowments, and technology. The Heckscher–Ohlin model shows how differences in factor endowments determine comparative advantage: goods differ in factor intensity, and countries tend to export goods that are intensive in the factors they have in abundance.

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Essentials Of Economics

ISBN: 9781429218290

2nd Edition

Authors: Paul Krugman, Robin Wells, Kathryn Graddy

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