Unformatted text preview: country, two good example. d. Be able to graph the production possibilities frontier of a country in autarky and then with trade. e. How does this model apply to developing countries in general? Would we imagine that they would completely specialize in one good or another? For developing countries, the demand for labor will increase because they will specialize in only labor intensive goods. f. What are the differences between the model of comparative advantage and the Heckscher-Ohlin model in terms of the impact of opening a developing country to international trade relationships? HO model we are able to see equalization, however, not without trade manipulation. These models advocate the free trade without government intervention....
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- Spring '09
- International Trade, factor prices