Problem
1. Even though their relative factor abundances differ widely, both India and the United States export similar agricultural products such as rice. What might explain this apparent contradiction of the Heckscher-Ohlin model?
2. "Increasing the mobility of labor and/or capital within a country not only will reduce the internal opposition to the expansion of the country's international trade but also will lead to greater gains in real income for the country." Comment on this statement.