Does the presence in the real world of intraindustry trade prove or disprove the classical or Heckscher-Ohlin models? Explain
What will be an ideal response?
It does not disprove these theories, but it does present difficulties. Clearly, both theories would seem to imply that trade should be interindustry. Some intraindustry trade can be explained by transport costs or by data classification problems. The intraindustry trade that remains suggests the need for broader theories that incorporate such factors as increasing returns to scale and goods that are imperfect substitutes.
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Answer the following statement true (T) or false (F)
A business organization owned by a group of people for their mutual benefit:
a. a cooperative b. a labor union c. a limited liability partnership d. a professional organization
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