Examlex
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Heckscher-Ohlin Model
An economic theory that proposes countries export what they can most efficiently and abundantly produce.
Comparative Advantage
The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than its competitors.
Ricardian Model
An economic theory that focuses on comparative advantage, explaining how countries can gain from trade by specializing in producing goods at a lower opportunity cost.
Production Possibility Frontiers
These are curves that depict the maximum potential output of a combination of two goods or services that an economy can produce with available resources.
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