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1. (a) What does the H-O theorem postulate? (b) What force does H-O identify as the basic determinant of comparative advantage and trade? (c) In
1. (a) What does the H-O theorem postulate?
(b) What force does H-O identify as the basic determinant of comparative advantage and trade?
(c) In what way does the H-O theory represent an extension of the standard trade model presented in the chapter?
2. (a) What does the factor-price equalisation theorem postulate?
(b) What does the Stopler-Samuelson theorem postulate?
(c) What does the specific-factors theorem postulate?
(d) What is the factor-price equalisation's relationship to the international mobility of factors of production?
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