Neo - classical models explanation of the determinants, International Economics

Assignment Help:

Q. If a scale economy is the dominant technological factor establishing or defining comparative advantage, then the underlying facts explaining why a particular country dominates world markets in some product can be pure chance, or historical accident. Explain, and compare this with the answer you could give for the Heckscher-Ohlin model of comparative advantage.

Answer: This statement is correct since the reason the seller is a monopolist may be that it happened to have been the first to produce this product in this country. It may possibly have no connection to any supply or demand related factors nor to any natural or man-made availability. This is all closely the opposite of the Heckscher-Ohlin Neo-Classical model's explanation of the determinants of comparative advantage.


Related Discussions:- Neo - classical models explanation of the determinants

WTO, Special and Differential treatment

Special and Differential treatment

Significance of macroeconomic policy coordination, Q . Use the following ta...

Q . Use the following table to demonstrate the significance of macroeconomic policy coordination. Demonstrate that the two governments would have been happier if the two of them h

Trams of trade, different between her barter terms of trade and net barter ...

different between her barter terms of trade and net barter terms of trade

Assignment, Road,railway,air and shlping transportation

Road,railway,air and shlping transportation

How and why did europe set up its single currency, Q. How and why d...

Q. How and why did Europe set up its single currency? Answer: The why part of the question is associated to large fluctuations in the exchange rates between the Europe

Dd-aa schedule, Q. Imagine that the economy is at a point on the DD-AA sche...

Q. Imagine that the economy is at a point on the DD-AA schedule that is above both AA and DD and where both the output and asset markets are out of equilibrium. Explain what will h

How can long-run values in the real exchange rate change, Q. How can ...

Q. How can long-run values in the real exchange rate change? Answer: A elevate in world relative demand for U.S output origins a long-run real appreciation of the dollar

How does fall in real interest rate affect consumption, Q. Consider the eco...

Q. Consider the economy is initially consuming along the intertemporal budget constraint at point A, where no saving occurs. How does a fall in the real interest rate, r, and affe

What is international relationship, International relations (IR) is the stu...

International relations (IR) is the study of relationships among countries, including the roles of states, inter-governmental organizations (IGOs), international nongovernmental or

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd