(A) Explain How the Heckscher-Ohlin Theorem Is Obtained, Using Either

question 20

Essay

(a) Explain how the Heckscher-Ohlin theorem is obtained, using either the "physical" definition or the "price" (or "economic") definition of relative
factor abundance.
(b) Illustrate and explain the phenomenon of a "factor intensity reversal." If two countries are trading in a situation where such a reversal has occurred, can the Stolper-Samuelson theorem still be valid for both of the countries? Briefly explain.

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Definitions:

Glycolysis

The breakdown of glucose by enzymes, releasing energy and pyruvic acid, and serving as the initial step in many metabolic pathways.

Energy Investment

The initial stage in metabolic pathways like glycolysis, where energy is consumed to initiate the process.

Initial Investment

The initial amount of money put into a project, business, or investment.

Anabolic Reaction

A biochemical process that builds molecules from smaller units, typically consuming energy, as part of the body's synthesis of complex molecules.