Question 1: Does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns?
Question 2: The Heckscher-Ohlin theory demonstrates how trade affects the distribution of income within trading partners. Explain.
Question 3: How does the Leontief paradox challenge the overall applicability of the factor-endowment model?
Question 4: According to Staffan Linder, there are two explanations of international trade patterns-one for manufacturers and another for primary (agricultural) goods. Explain.
Question 5: Describe a specific tariff, an ad valorem tariff, and a compound tariff. What are the advantages and disadvantages of each?