With the Help of a Suitable Diagram, Explain How in a Two-Country

question 8

Essay

With the help of a suitable diagram, explain how in a two-country two commodity model, one of the countries may fail to specialize completely despite enjoying comparative advantage in one of the goods.

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Definitions:

Mild Punishers

Interventions or consequences designed to decrease a behavior's occurrence, which are not severe or harsh.

Flooding

A behavioral therapy technique used to treat phobias and anxiety disorders by exposing the patient to their fear at its most intense level, without any danger, to eliminate the fear response.

Extinction

The process through which a conditioned response decreases or disappears over time as it is no longer reinforced or paired with an unconditioned stimulus.

Avoidance Behavior

Actions taken to prevent or avoid the occurrence of an unpleasant stimulus or scenario.