Economy, asked by sh642674, 5 months ago

criticism of factor endowment?​

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Answered by Anonymous
1

Criticism. The critical assumption of the Heckscher–Ohlin model is that the two countries are identical, except for the difference in resource endowments. ... The relative abundance in capital leads the capital-abundant country to produce the capital-intensive good cheaper than the labor-abundant country, and vice versa.

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