1) The Heckscher-Ohlin Model (HO Model) offers an explanation of the patterns of international trade that arises from differences in factor endowments across countries, while keeping technologies equal as an assumption. Since in reality technologies are not equal across countries, the HO Model fails to provide valuable insight into the analysis of international trade.

Clearly indicate if the statement istrue orfalseandbrieflyexplain your answer.

2)According to the Specific Factor Model, international trade produces winners and losers within a country because in the short run, some production factors are specific to the production of a particular product or service.

Clearly indicate if the statement istrueor falseandbrieflyexplain your answer.