Question

what is stated as limitation of H-O theory.
a.Leontief's Paradox
b. Absolute cost principle​

Answer 1

Answer:

leontief's paradox

Explanation:

is right answer. ......

Answer 2

Heckscher–Ohlin model (H–O model) is a general equilibrium mathematical model of international trade, developed by Eli Heckscher and Bertil Ohlin at the Stockholm School of Economics. It builds on David Ricardo's theory of comparative advantage by predicting patterns of commerce and production based on the factor endowments of a trading region. The model essentially says that countries export products that use their abundant and cheap factors of production, and import products that use the countries' scarce factors.