What are the assumptions of the specific factors model

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Reference no: EM132034764

Consider an instance of the Specific Factors model with two goods – Agricultural goods (A) and Manufactured goods (M) – and three productive factors – Labour (L), Capital (C) and Land (T). What are the assumptions of the Specific Factors model? What are the gains and losses of trade within the Specific Factor model? Provide graphs and formulas if possible.

Reference no: EM132034764

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