How Does the Theory of Comparative Advantage Differ from the Factor

question 14

Essay

How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.

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Definitions:

Productivity

The measure of how efficiently and effectively resources are used to produce goods and services.

Synthetic Systems

Manufacturing system that combines inputs to create a finished product or change it into a different product.

Auto Salvage

The business of dismantling wrecked or decommissioned vehicles to sell their usable parts, often involving recycling processes.

Output

The amount of something produced by a person, machine, business, or industry.