Problem
1. Explain why the Leontief paradox and the more recent Bowen, Learner, and Sveikauskas results reported in the text contradict the factor-proportions theory.
2. In the discussion of empirical results on the Heckscher-Ohlin model, we noted that recent work suggests that the efficiency of factors of production seems to differ internationally. Explain how this would affect the concept of factor price equalization.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.