Which Model Best Explains the Cross-Trade of Very Similar Products

question 122

Multiple Choice

Which model best explains the cross-trade of very similar products exported and imported by trading partners?

• A) Ricardian
• B) Heckscher-Ohlin
• C) specific-factors
• D) monopolistic competition

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Definitions:

Descartes

René Descartes, a French philosopher, mathematician, and scientist, known for his statement "Cogito, ergo sum" (I think, therefore I am).

Astronomical Theory

A scientific theory or set of principles that aims to explain phenomena observed in astronomy, such as the motions of celestial bodies or the evolution of the universe.

Sunset

The time in the evening when the sun disappears below the horizon.

Leibniz

A German polymath and philosopher best known for his contributions to metaphysics, mathematics, and the development of the calculus independently of Isaac Newton.