Explain what exactly is missing

Assignment Help Microeconomics

Reference no: EM13982030

The Heckscher-Ohlin model is famous for being elegant and mathematically sophisticated, yet failing to describe reality. One manifestation of this fact is Trefler's Case of Missing Trade.

1) Explain what exactly is missing. In what sense is it missing?

2) How would you explain why it is missing?

3) How can a relaxation of the identical production functions explain the case of the missing trade?

I need an unique, no plagiarism answer for each question, because Professor will check it.

Reference no: EM13982030

Questions Cloud

Emphasizing the difference between money and income : Why do economists insist on emphasizing the difference between money and income? Why is this difference important in macroeconomics?

Explain the exchange rate between the yen and the euro : Suppose a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value. The Lexus sells for 6,000,000 Japanese yen in Tokyo and the Mercedes sells for 50,000 euros in Stuttgart. Using the purchasing power parity theory, explain the exchan..

Describe the type of hedonism for which epicurus advocates : Describe the type of hedonism for which Epicurus advocates. How do his ideas on ethics compare with Mill's system of moral judgment? Describe how the golden mean is a central concept for both Epicurus and Aristotle's goal of living a good life

Because britain wanted to go the path towards more : ____ after WWII because Britain wanted to go the path towards more ____.

Explain what exactly is missing : The Heckscher-Ohlin model is famous for being elegant and mathematically sophisticated, yet failing to describe reality. One manifestation of this fact is Trefler's Case of Missing Trade. Explain what exactly is missing. In what sense is it missin..

Make how societal development or progress is measured : What difference does it make how societal “development” or “progress” is measured? What difference might it make if the Genuine Progress Indicator (GPI) were to replace the Gross National Product or Gross Domestic Product (GNP or GDP) as the standard..

What are the export regulation in italy : What are the export regulation in Italy? What type of paperwork and bureaucracy are needed to export? Does the government provide assistance? Any government organizations to help exporters?

What is the discounted payback period of proposed investment : A 2,000 square foot house in New Jersey costs $1,725 each winter to heat with its existing oil-burning furnace. For an investment of $5,000, a natural gas furnace can be installed, and the winer heating bill is estimated to be $1,000. If the homeowne..

What do social scientists mean : What do social scientists mean when they say that Race is a social construct, not a natural category? Please be as detailed as possible in your answer...give examples from various fields...support your answer with knowledge from the history of sc..

User Account

All Pages