Because of this theory, which the Hecksher-Ohlin model illustrates with the two factors of capital and labor, nations always can find it profitable to trade in something. The ricardian model only illustrates it for the factor of labor, but still shows that if price ratios differ from country to country, they have a basis for trade. FTP, identify this theory that says all nations can benefit by trading goods even if they d
Because of this theory, which the Hecksher-Ohlin model illustrates with the two factors of capital and labor, nations always can find it profitable to trade in something. The ricardian model only illustrates it for the factor of labor, but still shows that if price ratios differ from country to country, they have a basis for trade. FTP, identify this theory that says all nations can benefit by trading goods even if they do not have an absolute advantage in production.
Because of this theory, which the Hecksher-Ohlin model illustrates with the two factors of capital and labor, nations always can find it profitable to trade in something.
{COMPARATIVE ADVANTAGE}