If a Scale Economy Is the Dominant Technological Factor Defining

question 13

Essay

If a scale economy is the dominant technological factor defining or establishing comparative advantage, then the underlying facts explaining why a particular country dominates world markets in some product may be pure chance, or historical accident. Explain, and compare this with the answer you would give for the Heckscher-Ohlin model of comparative advantage.

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Definitions:

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist whose works have influenced social theory and the development of the social sciences.

Capitalism

is an economic system characterized by private or corporate ownership of capital goods, by investments determined by private decision, and by prices, production, and the distribution of goods that are determined mainly in a free market.

Alienation

A state or experience of being isolated, detached, or disconnected from oneself, others, or society, often used in social sciences to describe a sense of estrangement produced by social structures.

Giorgio Agamben

An Italian philosopher known for his work on sovereignty, the state of exception, and concepts of biopolitics.