the source of comparative country's by HO model
Answers
Explanation:
1. Study the given information carefully to answer the given question. ‘Galax fibre’ is manufactured only in country A. Though its demand across the world has remained more or less same since the past three years, the profits earned from the fibre has decreased by 20% in the last 8 months causing an overall loss of around 35 crore. Country A has never made such a huge loss of Galax fibre ever.
Which of the following can be inferred from the given statements?
(a) The companies that manufacture Galax fibre will have to shut down owing to losses.
(b) Galax fibre is expo
Answer:
The Heckscher-Olin Model is an equilibrium model of international trade that builds on David Ricardo's theory of comparative advantage. The model demonstrates that a country will have a comparative advantage in producing goods that are intensive in the factor with which it is relatively abundant.
Explanation:
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