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1: Consider a Heckscher-Ohlin model. Two countries, Domestic and Foreign, produce A and B using the production technologies below. Let w = r in both
1: Consider a Heckscher-Ohlin model. Two countries, Domestic and Foreign, produce A and B using the production technologies below. Let w = r in both countries. A = LA 2KA B = 2LB KB 1.1. Which industry is capital-intensive? (Hint: think about perfect substitutes) A The A industry B The B industry
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International Business
Authors: John Daniels, Lee Radebaugh, Daniel Sullivan
16th edition
134200055, 978-0134201542, 013420154X, 978-0134200057
