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3. Incomplete Specialization in the HeckscherOhlin model is the result of which assumption? (a) Increasing opportunity costs. (b) Identical consumer tastes across trading countries. (c)
3. Incomplete Specialization in the HeckscherOhlin model is the result of which assumption? (a) Increasing opportunity costs. (b) Identical consumer tastes across trading countries. (c) Different production factor endowments. (d) All of the above. 4. Consider two trading partner countries with identical preferences and technology to produce two goods, X and Y. There are two factors used in the production of those goods: labor and capital. An outow of workers moves from one of these two countries to a. third country, not open to trade. (a) Capital owners are made worse off in both countries. (b) Capital owners are made better off in both countries. (c) Capital owners are worse off in both countries if, and only if, labor ows out of the capital abundant country. ((1) Capital owners are worse off in both countries if, and only if, labor ows out of the laborabundant country
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