Question
What is the basis of international trade in the
Heckscher-Ohlin model?Solution
Factor Endowments is the basis of international trade for a country in case of Heckscher Ohlin Model. The model essentially says that countries export the products which use their relatively abundant and cheap factors of production, and import the products which use the countries' relatively scarce factors.
If A : B = 8:5 and A is 21 more than B then find the sum of A and B.
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