Which of the following models of international trade has taken into account three factors, two goods,…
The specific factors model uses two countries, two goods and three factors of production. Labour is mobile between domestic sectors, while each of the other two factors is…
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Which of the following models of international trade has taken into account three factors, two goods, two countries along with neo-classical production function?
Answer and explanation
Correct answer A
The specific factors model uses two countries, two goods and three factors of production. Labour is mobile between domestic sectors, while each of the other two factors is specific to one sector.
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Telangana SET (TG SET)