What Is the Source of Comparative Advantage in the Heckscher-Ohlin

question 49

Short Answer

What is the source of comparative advantage in the Heckscher-Ohlin model?

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Definitions:

Positive-Sum Game

A situation in economic, political, or cooperative contexts where all participants can gain or benefit in some way.

Zero-Sum Game

A situation in game theory where the gain of one participant is exactly balanced by the loss of another participant.

Credible Threat

A promise of negative consequences that is believable and likely to influence behavior in strategic situations.

Collusive Agreements

Refers to arrangements between firms to limit competition, fix prices, or divide markets among themselves, often leading to higher prices for consumers.