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The passage discusses the relevance and assumptions of the Peckcher-Ohlin model of international trade. It notes: 1) The Peckcher-Ohlin model assumes countries differ in factor endowments and that trade will result in specialization according to comparative advantage. 2) The model is based on four theorems that demonstrate patterns of trade and returns to factors of production between capital-abundant and labor-abundant countries. 3) While influential, the Peckcher-Ohlin model makes strict assumptions a
- Author
- Niharika Mazumdar
- Language
- EN