Economics · International Trade Theories
According to Bertil Ohlin, international trade is a special case of inter-regional trade because:
- 1Factors of production are perfectly mobile internationally.
- 2Different currencies are used across regions.
- 3The general equilibrium price theory is equally applicable to both.✓
- 4Comparative costs do not apply to inter-regional trade.
Correct answer
The general equilibrium price theory is equally applicable to both.
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