Solved: What is factor-proportions theory, Macroeconomics

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What is factor-proportions theory

Question 1. In the Ricardian model, everyone seems to benefit from trade. However, the Heckscher-Ohlin model seems to show that some lose from trade as well. Who are the losers in the HO model, and how do they not benefit from trade?

Question 2. What is factor-proportions theory, and how is this theory useful in determining production advantages?

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Macroeconomics: What is factor-proportions theory

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