Compare and Contrast the Predictions of the Heckscher-Ohlin and Classical

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The Answer is Both the classical and the HO models argue that the gains from trade emanate from different autarky relative prices.Consequently,differences in technology or factor endowments would seem to imply the possibility to exploit these gains.Linder argues that countries with similar standards of living (i.e.similar factor endowments or technologies)will produce similar types of goods and hence benefit by trading extensively,due largely to the availability through trade of an increased variety of goods.

Compare and Contrast the Predictions of the Heckscher-Ohlin and Classical

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