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Match models with assumptions MOdels: Ricardian model Heckscher-Ohlin model Specific Factors (Ricardo-Viner) A common assumption to all three models Assumptions A.Labor and capital are free
Match models with assumptions
MOdels:
Ricardian model
Heckscher-Ohlin model
Specific Factors (Ricardo-Viner)
A common assumption to all three models
Assumptions
A.Labor and capital are free to move between the two industries but not across countries
B.Only labor can move between industries
C.the marginal products of labor are constant because production does not include land or capital.
D.Constant or decreasing returns to trade
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