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Q. |
As opposed to the Ricardian model of comparative advantage, the assumption of diminishing returns in the Heckscher-Ohlin model means that the probability is greater that with trade |
A. | Countries will not be fully specialized in one product |
B. | Countries will benefit from free international trade. |
C. | Countries will consume outside their production possibility frontier. |
D. | Comparative advantage is primarily supply related. |
Answer» A. Countries will not be fully specialized in one product |
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