Problem-

As an international economist you have been asked to prepare a short speech which answers the following questions:

• How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns?

• The theory demonstrates how trade affects the distribution of income within trading partners. Explain.

• How does the Leontief paradox challenge the overall applicability of the factor-endowment model?

• According to Staffan Linder, there are two explanations of international trade patterns-one for manufacturers and another for primary (agricultural) goods. Explain.

• Following that speech, the audience asks you to respond to the following question:

• Describe a specific tariff, an ad valorem tariff, and a compound tariff. What are the advantages and disadvantages of each?

Additional Information-

The problem is belongs to Economics and the problem is about the differences between Ricardian theory and Heckscher-Ohlin theory in explaining international trade patterns. These 2 theories are based on several assumptions and all these assumptions such as the expectations of most people from different countries and market assumptions have been considered.

Word limits- 800