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Discussing production and tradequestions1 out of all of the

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Reference no: EM13367579

Discussing Production and Trade

Questions:

1. Out of all of the possible production points along a production possibilities curve, which one of those points does a nation select and why?

2. International trade theory says that relative product prices would differ if there was no trade between the countries. What is the basis for this theory?

3. What does the Heckscher-Ohlin Theory say about what determines the trade patterns between countries?

Reference no: EM13367579

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