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Explain and demonstrate how trade yields mutually beneficial outcomes. Compare and contrast the findings of the Ricardian (1 factor of production) model with the HO
Explain and demonstrate how trade yields mutually beneficial outcomes. Compare and contrast the findings of the Ricardian (1 factor of production) model with the HO model (two factors of production). How is total consumption possibilities affected in the two models? How does the distribution of income between groups differ in the two models? What adjustments have been made to the HO model in recent decades and how have these held up empirically?
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