What are the effects of transportation costs on, International Economics

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What are the effects of transportation costs on

Problem

1. What are the effects of transportation costs on international trade patterns?

2. Explain how the international movement of products and of factor inputs promotes an equalization of the factor prices among nations.

3. How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns?

3. The Heckscher-Ohlin theory demonstrates how trade affects the distribution of income within trading partners. Explain.

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International Economics: What are the effects of transportation costs on

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