Briefly explain the Heckscher-Olin (H-0) Theory Assume a two-country, two-product model where the countries are A and B and the products are Y and Z. In the free trade equilibrium, the international price of good Z is less than the no-trade price of good Z would be in Country A. Explain why, for Country A, Ricardo's comparative advantage model predicts full specialization, while the Heckscher-Ohlin model predicts only partial specialization in the production of two goods. "In the two-good, two-country model with increasing costs, the output quantities are determined only by However in the same