Regarding the Hechscher Ohlin model,what are the implications of the factor price insensitivity theorem on the equilibrium real wages in the two countries (Home and Foreign) in a H-O model with two...


Regarding the Hechscher Ohlin model,what are the implications of the factor price insensitivity theorem on the equilibrium real wages in the two countries (Home and Foreign) in a H-O model with two goods and two factors; and is it possible to have complete specialization? Why or why not? (Hint: start with the Edgeworth box and the Rybczynski theorem).



May 15, 2022
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