Ricardian model-heckscher-ohlin model
Problem: Contrast several trade theories: Ricardian Model, Heckscher-Ohlin Model, Leontief paradox and the Linden model. How does each challenge the other and improve on previous work?
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1) Sketch a graph of the economy’s production possibilities frontier. Identify the economy’s current output on this graph. 2) Does the existing allocation satisfy substitution efficiency? Why or why not?
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Contrast several trade theories: Ricardian Model, Heckscher-Ohlin Model, Leontief paradox and the Linden model. How does each challenge the other and improve on previous work?
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Using the company Bausch & Lomb (www.bausch.com), list at least four conditions that would change the Production Possibility Curve, and state, in reasonable detail, how the change(s) would affect the firms PPC.
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