The Theory of Comparative Advantage and the Heckscher-Ohlin Theorem both treat the factors of production as being

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The Theory of Comparative Advantage and the Heckscher-Ohlin Theorem both treat the factors of production as being immobile between economies. Why is this a crucial assumption in explaining international trade patterns?

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Principles Of Macroeconomics

ISBN: 9781292303826

13th Global Edition

Authors: Karl E. Case,Ray C. Fair , Sharon E. Oster

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Question Posted: Dec 16, 2023 01:17 AM

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The Theory of Comparative Advantage and the Heckscher-Ohlin Theorem both treat the factors of production as being

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The assumption of immobility of factors of production between economies is crucial in explaining international trade patterns for several reasons 1 Fo...View the full answer

Principles Of Macroeconomics

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