Briefly explain the Heckscher-Olin (H-O) 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 considering society's preferences as illustrated with community indifference curves. However, in the same model, it is possible to determine the post-trade consumption point in each country without indifference