1wage ratios must lie in between the


1. Wage ratios must lie in between the inter-country productivity ratios.

2. Large countries are always less specialized.

3. Low wage countries have bigger gains from trade.

HECKSCHER-OHLIN MODEL:

1. Labor in a labour-abundant country will favour free trade.

2. Rise in labor supply has no effect on wage rates in the Heckscher Ohlin model.

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Business Management: 1wage ratios must lie in between the
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