The Posner-Hufbauer model of this posits a technology gap to explain short-term monopolies.
Jacob Viner introduced a pair of effects in which this behavior is "diverted" or "created" due to integration. The Posner-Hufbauer model of this posits a technology gap to explain short-term monopolies. The incorporation of economies of scale into studies of this phenomenon is the primary innovation of the "new" theory of it. The Lerner Diagram can be used to demonstrate a theory developed by Paul Samuelson that this phenomenon leads to (*) factor price equalization. Leontief's paradox contradicts predictions about this phenomenon in capital and labor-intensive countries made by the Heckscher-Ohlin model. Paul Krugman won a Nobel Prize in Economics for his work on this phenomenon, which can be distorted by the practice of "dumping." For 10 points, identify this type of exchange that is taxed by tariffs.
Jacob Viner introduced a pair of effects in which this behavior is "diverted" or "created" due to integration.
international trade