i) Discuss the degree of "specialization" that is predicted by the basic Ricardian Model and by the Heckscher-Ohlin model. (10 points)

ii) Comment on why the production possibilities curve in the Heckscher-Ohlin model may be more representative of "real world" production choices. (10 points)

iii) What is the essential difference between the Ricardian model and the Heckscher-Ohlin model with respect to underlying assumptions? (5 points)