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Why Is It That North-South Trade in Manufactures Seems to Be

question 28

Essay

Why is it that North-South trade in manufactures seems to be consistent with the results or expectations generated by the factor-proportions theory of international trade, whereas North-North trade is not?

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability in a set of data, often used in finance to quantify the risk associated with a security or investment portfolio.

Coefficient Of Variation

A standardized measure of the dispersion of a probability distribution or frequency distribution, used to assess risk relative to expected returns.

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating its risk relative to the market average.

Required Return

The smallest annual return percentage required to motivate persons or firms to allocate funds into a certain security or initiative.

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