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Exercise 3: Assumptions of the specific-factors model and Ricardian model a) What assumptions of the specific-factors model are different from the Ricardian model? b) How
Exercise 3: Assumptions of the specific-factors model and Ricardian model a) What assumptions of the specific-factors model are different from the Ricardian model? b) How does it change the conclusions of the effect of trade? c) What facts does it help to explain? d) Is this model more realistic than the Ricardian model, why or why not
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