(Answered) Regarding the hechscher ohlin model what are the

Management Studies

Regarding the Hechscher Ohlin model, what are the implications of the factor price insensitivity theorem on the equilibrium real wages in the two countries (Home and Foreign) in a H-O model with two goods and two factors; and is it possible to have complete specialization? Why or why not? (Hint: start with the Edgeworth box and the Rybczynski theorem).

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