Problem
Explain why the Leontief paradox and the more recent Bowen, Learner, and Sveikauskas results reported in the text contradict the factor-proportions theory? 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 inter-nationally. 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.