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Chapter Five: Factor Endowments and the Heckscher -Ohlin Theory

Chapter Five: Factor Endowments and the Heckscher -Ohlin Theory. By Rajkumar, Assistant Professor College of Vocational Studies. 5.2 Assumptions of the Theory. The Assumptions There are two nations (1&2), two commodities (X&Y), two factors of production (labor & capital).

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667 views • 61 slides

International Economy Week 3

International Economy Week 3. Prepared by Shi Young Lee* (Chung-Ang University) syl1347@hanmail.net 2010-1. Contents: Global Trade Models. Trade Models Based on Comparative Advantage I. Labor Productivity and Trade: Ricardian Model

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382 views • 21 slides

International Economics

International Economics. Lecture 4 | Carlos Cuerpo | Heckscher-Ohlin and the Role of Factor Endowments. Heckscher-ohlin: motivation. Extension of the Standard Trade Model: New Source of Comparative Advantage: Alternative explanation of Trade Patterns:

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569 views • 18 slides

Comparative Advantage and Trade

Comparative Advantage and Trade. Chapter 3. Comparative advantage (technology differences). unit labor requirement. = units of labor required to produce one. unit of a final good. . By assumption this is independent of the.

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184 views • 9 slides

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Heckscher ohlin - PowerPoint PPT Presentation

Chapter Five: Factor Endowments and the Heckscher -Ohlin Theory

International Economy Week 3

International Economics

Comparative Advantage and Trade