Question

Discuss the role of daynamic factors in international trade

Answer 1

A Dynamic Specific-Factors Model of International Trade. In a dynamic economy land and capital serve not only as factors of production but as assets which individuals use to transfer income from working periods to retirement. ... In this case the land-using sector dominates factor markets more than asset markets.

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Answer 2

In a dynamic economy land and capital serve not only as factors of production but as assets which individuals use to transfer income from workinq periods to retirement. Static models of international trade based on the specific-factors model incorporate only the first of these.